JAKARTA - Netflix has started rolling out subscription packages at a cheaper cost with ads. Dubbed Basic with Ads, this package is here to grow new subscribers of the streaming platform.
This new Basic with Ads package will be priced at US$6.99 or equivalent to Rp107 thousand per month starting November 3 in the United States (US) first. By selecting the package, users will see about four to five minutes of advertising per hour, but the quality of the video is only limited to 720p.
According to Netflix, this cheap package will also be available in 11 other countries in November, including Australia, Brazil, England, Canada, France, Germany, Italy, Japan, South Korea, Mexico, and Spain. It is not yet known whether Indonesia is also the target.
Ads ranging from 15 to 30 seconds, will be screened before and during the old version of television and film shows. For newly released films, ads will only be screened before the film starts.
However, because it's a cheap subscription package, Netflix also limits a few things, where users won't be able to download content offline.
Netflix also limits access to movie and TV shows between 5 and 10 percent of the service when the Basic with Ads package starts due to licensing restrictions.
"We believe that with this launch we will be able to provide plans and prices for every Netflix fan," said Netflix chief operating Greg Peters.
Launching the New York Times, Friday, April 14, the ad is managed by Microsoft and Netflix in collaboration with two verification companies to ensure that the ads on the platform are viewed as appropriate.
The company also said Nielsen will be able to analyze the range of certain viewers and demographics of viewers in the US. The partnership will begin in 2023.
To target ads to the right audience, Netflix will collect information about gender and date of birth from users who choose the Basic with Ads package.
Lastly, Netflix's Basic with Ads is expected to bring in new subscribers and those who have shared passwords with friends and family can stop using other people's accounts and pay for themselves.
"I think this is a very relevant and complementary approach because obviously whatever we do with password sharing, getting people to get offers at lower prices is a great way to give them a chance to find Netflix and pay for it accordingly," said Peters.
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