Netflix will charge $6.99 a month for new ad-supported plan starting Nov. 3 in U.S.

by | Oct 13, 2022 | Business

The Netflix logo is seen on a TV remote controller, in this illustration taken January 20, 2022.Dado Ruvic | ReutersNetflix will charge $6.99 per month for its new advertising-supported tier, which the company will roll out in the U.S. on Nov. 3.Netflix’s “Basic with ads” tier will include an average of four to five minutes of commercials each hour and won’t give users the ability to download movies and TV series. A limited number of TV series and movies will initially be unavailable due to licensing restrictions.Ads will be 15 or 30 seconds in length and will play before and during Netflix’s content. Companies will have the ability to prevent ads from appearing on content they deem unsavory or unsuitable. To help advertisers understand its reach, ratings company Nielsen will use its standard digital audience measurement, Digital Ad Ratings, in the U.S. beginning in 2023.Netflix is launching its first less-expensive plan with commercials after years of rejecting the concept. The move comes as subscriber growth has plateaued in recent quarters. Netflix lost subscribers in the first two quarters this year and expects to add just 1 million customers in the third quarter. The company has about 221 million subscribers globally, which makes it the largest worldwide streaming service.Netflix will announce its third-quarter earnings after the market closes Tuesday and plans to unveil new subscriber and revenue forecasts, according to Chief Operating Officer Greg Peters. Netflix is partnering with Microsoft for its advertising-supported service. The streaming company will have hundreds of advertisers at launch and has nearly sold out its inventory, the company said in a media conference call.Initially there will be no advertising within kids programming and new movies. Older films may have mid-roll advertising.Pricing below DisneyNetflix’s $6.99 per month pricing is less expensive than ad-supported Disney+ and Hulu, which will both be $7.99 per month when Disney+’s ad tier launches in Decem …

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