Cheap netflix ain’t free: goodbye downloads and premieres, hello 5 minute ads per hour

Netflix announces a new plan for the tightest pockets: ‘With basic ads’ the streaming giant proposes for those who want cheap and They don’t mind seeing ads,

The new plan, which according to Netflix will arrive in Spain on November 10, It will cost 5.49 Euro per month, The ‘Basic’ package is currently priced at 7.99 euros.

In addition to Spain, the new membership offer for Netflix It will be available in Germany, Australia, Brazil, Canada, South Korea, the United States, France, Italy, Japan, Mexico and the United Kingdom. The company makes sure that the ad lasts for 15 or 30 seconds, except In our country, where the ad will run for 20 seconds,

Example of how ads will appear on the platform.

What do we lose by paying 2.50 euro less?

As we say, ‘Original with Ads’ will cost € 5.49 per month in Spain, that is, 2.50 Euro less than the ‘Basic’ plan,

Obviously, this savings will come at a cost: in addition to seeing Content with Advertisement – 4 or 5 minutes every hour-some Movies and series will not be available -Presumably this will affect premiere-, the broadcast is in 720p and you will not be able to download To see offline,

We remind you that advertisements will be seen at the beginning of series and films, as well as during their reproduction.

In this table you can see the difference between Netflix subscription plans.
In this table you can see the difference between Netflix subscription plans.

And what are the benefits?

Apparently, the only benefit of this offer is the possibility of paying two and a half euros less per month, according to official data on Netflix subscription plans.

for some, especially perhaps For young users or those who have subscribed to multiple platformsThis savings would be enough to ‘swallow’ the ads, view a limited catalog available and abstain from downloads.

Netflix will make billions of dollars selling ads

According to Douglas Anmuth, analyst at JP MorganThe largest bank in the United States and one of the largest financial companies in the world, Netflix in North America alone could attract 7.5 million new subscribers in 2023 thanks to this new subscription offering with ads that could reach Is Contribute up to $600 million in ad sales next year,

But the predictions are even more optimistic if we let time pass: By 2026, Anmuth believes Netflix’s US/Canada ‘Basic with Ads’ plan will have 22 million subscribers and will generate $2.65 billion in ad sales.

This optimism has already been reflected on Wall Street: Shares of the streaming giant are up 19% in the past three months,

That's how Netflix shares have varied in value in recent months.
That’s how Netflix shares have varied in value in recent months.

controls for advertisers

“To help advertisers reach the right audience and Make sure our ads are relevant to consumersWe offer extensive country and gender targeting options,” he tells Netflix.

In addition, advertisers can also “Prevent your ad from appearing on content that may be inconsistent with your brand”Such as those that contain sex, nudity or explicit violence.

The company claims it has signed contracts with DoubleVerify and Integral Ad Science to “verify the visibility and traffic legitimacy” of its ads from the first quarter of 2023.

Currently, the ad is only available in the United States.

alliance with microsoft

In July, Netflix named Microsoft As an exclusive technology and sales partner to help empower your membership with advertising.

They explain to Microsoft that in each of the countries where the plan will be available, they are “working with key advertisers to plan compelling, relevant and world-class content that is as entertaining as programming.” ,Advertisers eager to reach Netflix’s vast audience in a premium environment”, they add.

“This would not have been possible without the effort of our team or the extraordinary collaboration with Microsoft,” he insists to Netflix.

The people of Redmond will help Reed Hastings through his advertising technology, as well as being the company’s global sales partner. Microsoft is the only partner in advertising, so All ads will go exclusively through your Xandr platform,

Netflix drops subscribers for the first time in a decade

Earlier this year, the platform streaming It was seen at its worst in ten years: Netflix subscribers fell for the first time since 2011, During the presentation of results for the first quarter of the year, the company showed a decline of 200,000 users.

But, apart from that, he saw them coming a little dark, because in the letter to the shareholders, Netflix drops that it expects to lose 2 million more subscribers in the second quarter of 2022,

The reasons the US firm attributed this decline in clients are very diverse. the first of them has been Complete termination of service in RussiaBy invasion of ukraine, causing a loss of 700,000 accounts, but there is more. According to Netflix, the culprit this fall is likely share passwordSomething that’s logical, avoids adding new customers.

Some share their Standard and Premium plans with friends and family they don't live with.

They justify the decline due to a slowdown in broadband and smart TV adoption, as well as more competition from both traditional cable television and other services. Similarly, the aftermath of the pandemic has had its own impact.After a time of ‘fat cows’ in which many people signed up for K platforms streaming to be at home

Currently, Netflix has over 200 million subscribers. And still has the largest user base on the Internet landscape. streamingBut the slowdown forecast the company has forecast could bring competition closer slowly.

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