Netflix is adding advertising to its service for the very first time on a new tier that’s cheaper than the rest.
The new Netflix tier is called ‘Basic With Ads’ and it’s launching in 12 countries for $6.99 US.
Well, basically—it grew, thanks to its mind-blowing strategy and available movies in ad-free binges. Back when commercial-packed traditional TV dominated, Netflix pitched itself as the alternative that wouldn’t break the flow of your programming with advertising, nor would it make you wait week to week to watch your next episode.
Building itself into a giant by playing the contrarian, Netflix spent years dismissing the notion of advertising on its service.
Today’s time in fast forward: Nearly all of Hollywood’s major media companies have launched their own streaming services to take on Netflix, including Apple TV Plus, Disney Plus, HBO Max, Peacock and, Paramount Plus. Anas they rolled out, they introduced features that have now become industry norms that customers expect, including an option to pay less if you watch ads.
WHEN WILL NETFLIX LAUNCH ADVERTISING?
The new Basic with Ads membership option will go live in November in 12 countries:
Nov. 1: Canada and Mexico
Nov. 3: The US, as well as in Australia, Brazil, France, Germany, Italy, Japan, South Korea and the UK
Nov. 10: Spain
WHY IS NETFLIX DOING THIS?
Netflix believes they will be able to attract new users with a cheaper tier. The streaming company saw its first quarterly decline in subscribers in more than a decade in April; almost immediately, Netflix executives announced plans to introduce adverts. In July, Netflix reported its second quarter of loss of subscribers, losing around 1 million. The company’s market value has slumped by 65% over the last year.
