Plans for an ad-supported subscription at Netflix have been known for some time. Variety now reported, with reference to sources in the industry, that the new model is to be launched as early as November 1, much earlier than expected. If this is indeed the case, Netflix would in all likelihood primarily like to outdo the competition from Disney+.
Competition between Netflix and Disney?
Ad-supported streaming offerings are becoming more widespread. Amazon, for example, recently launched its Freevee streaming service, which is funded by ads and can be used for free. Netflix and Disney announced some time ago that they would be adding an advertising subscription to their range of services, which would be cheaper than the existing options. Disney is launching its new subscription model on December 8 in the US. It is expected to launch in other countries next year.
Both Variety and Business Insider have now reported, with reference to industry contacts, that Netflix wants to get ahead of Disney and make its advertising model available as early as November 1 of the current year. According to the reports of the two media, it is to start at this time not only in the U.S., but also in the United Kingdom, Canada, France and Germany. Netflix itself had announced the market launch for 2023.
Microsoft, as an advertising partner, is responsible for acquiring advertising in this regard. The company is said to have asked trading platforms to submit initial bids for Netflix’s ads by September 5, 2022 – which would suggest a fairly tight schedule. It was also reported that Netflix was asking for a minimum spend of ten million US dollars per year, wanted to have the process completed by the end of September, and had told interested parties to expect 500,000 ad subscriptions sold by the end of 2022. However, these details also come from Variety and Business Insider reports, whose sources cannot be verified.
Netflix denies rumors
Netflix itself has already commented on the matter and denied corresponding rumors: “We are still in the early stages of deciding how we will introduce a lower-priced, ad-supported tier, and no decisions have been made yet.” Accordingly, no firm statements can be made at this time.
Also unclear is the pricing model envisaged by Netflix. It has not yet been decided internally how much Netflix will charge for the advertising subscription. The only thing that is certain is that the subscription will not be free. So far, prices between seven and nine US dollars per month are being traded in the public discussion. It is not known whether the prices of the existing subscription options will be adjusted upwards.
It is also assumed that Netflix wants to offer a limited service in the promotional version. For example, the option to download movies and series for offline use will not be available. In addition, only some of the content available in the other subscriptions will also be available in the commercial subscription.