Netflix has announced that they will be launching their ad-supported subscription tier on November 3. Called the Basic with Ads plan, the ad-supported tier will first be found in the United States. Countries where prices of Netflix’s plans are higher, such as Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, Spain, and the UK, will be getting the new Basic with Ads plan later. It is not clear yet when this plan will be implemented in India
This new plan won’t impact any of Netflix’s other plans for the international market. The new “Basic with Ads” plan will cost $6.99 or roughly Rs 600 per month, which is close to India’s Rs 649 Premium Plan. The new ad-supported tier shakes things up by quite a bit.
Features of Netflix’s ad-supported plan
In the Basic with Ads, users get about 4-5 minutes of commercials for every hour of content they consume. The ads served will be about 15-30 seconds in length and will be played before and during the actual piece of content. Netflix says that this model may be changed at a later date.
Users will also have access to a limited content library, but all Netflix Originals will be available. Users can only stream content on one device at a time, either on a television, PC, tablet, or mobile. Users will also not be able to download any titles.
The most significant change, however, will be that viewers on this plan can only stream content at 720p or HD resolution.
What kind of ads will be shown?
Netflix will partner with agencies to show the most relevant ads to customers. For instance, the company will partner with Nielsen and use its Digital Ad Ratings (DAR) in the US. A blog post says, “While it’s still very early days, we’re pleased with the interest from both consumers and the advertising community â€” and couldn’t be more excited about what’s ahead. As we learn from and improve the experience, we expect to launch in more countries over time”. They will partner with Microsoft and use their services to help deliver the commercials in their cheaper, ad-supported version.
How much could the ad-supported tier cost in India?
There’s no clear indication of that as of now. In the US, Netflix plans are pretty expensive, especially if we look at the exchange rates. The basic ad-free plan costs $9.99 or roughly Rs 800 per month. The standard and premium plans cost $15.49, or Rs 1,300, and $19.9,9 or Rs 1,600, per month. Therefore, it makes sense for Netflix to launch an ad-supported plan now in countries with higher subscription rates than in other markets.
In India, the streaming company dropped the price of its plans in December 2021. It currently costs Rs 149 for the mobile plan. The primary, standard, and premium plans cost Rs 199, 499, and Rs 649. The ad-supported plan in the US, which is supposed to be its cheapest plan, costs almost the most expensive we have in India. So in case, this new basic plan is brought to India, we’re pretty sure that Netflix will have to rejig their subscription plans to accommodate the mobile-only viewers and the premium users.