Initially, the "Basic with Ads" plan will be
available in 12 countries: Germany, Australia, Brazil, Canada, South Korea,
Spain, United States, France, Italy, Japan, Mexico and the United Kingdom.
"We are confident that now that Netflix is available
from €5.49 a month, we have a price and plan for all fans. While this is just
the beginning, there has been tremendous interest from both consumers and the
advertising community, and we couldn't be happier. As we learn and improve,
we will roll out this plan in more countries," said a Netflix
spokesperson.
For Greg Peters, it is a "magnificent opportunity"
for advertising advertisers, "to be able to reach a diverse audience -
including younger viewers, who increasingly watch less traditional television -
in a great environment to see ads in high definition".
There will be an average of 4-5 minutes of ads per hour and
advertisers will be able to prevent their advertising from appearing on content
that may be incompatible with their brand, in the case of sex, nudity or
graphic violence.
In July, Netflix announced a partnership with Microsoft to
develop its new low-cost, ad-supported subscription model.
The decision to create a low-cost subscription plan comes
after Netflix's loss of competitiveness in the streaming platform market
resulted in a slowdown in the company's growth rate and led to a reduction in
its workforce.
Netflix lost nearly a million subscribers (970,000 accounts)
during the second quarter of 2022, during which it made a net profit of $1,441 million
(about €1,472 million).
The company also highlighted that the transition from
traditional television to 'streaming' is getting faster.
"In the United States, it has surpassed open and cable
television", he noted.
In August, the Walt Disney Company also announced that later
this year it’s most popular streaming platform, Disney+, will offer an
ad-supported plan and an ad-free option at a higher price in the United States.