Netflix previously announced they would be introducing a new ad-supported tier to their streaming platform. The date is already confirmed to be on November 1st and now the company has revealed the pricing for this upcoming tier.
This new tier, called Netflix Basic With Ads, will be $3 cheaper than their lowest plan known as Netflix Basic, at $6.99 a month. Before this, the basic plan did not support HD, but the addition of the ad tier will give viewers of both to be able to stream content at 720p.
While it had previously been reported, the company also reiterated that the ad-supported tier would not have their full catalogue of titles.
Netflix chief operating officer Greg Peters said a “limited number of movies and TV shows won’t be available due to licensing restrictions” but the company is “working on reducing that over time.”
This limitation will affect 5-10% of titles depending on what country a viewer is residing in, and downloads for offline viewing are not supported either.
The new ad enabled tier for the service will see advertisements run for 15 or 30 seconds. They will play before and during television series and movies at an average rate of 4 to 5 minutes of ads per hour. Netflix is limiting this on new film releases though so users will only see pre-roll ads to “preserve the cinematic experience”.
It is still unknown what CPM rates the company was able to manage for this ad-supported platform. Most recent reports had them negotiating for rates as high as $65 CPM, which they most likely did not get.
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