Ads To Pay For "Password Sharing"

According to a Bloomberg article released over the weekend, Netflix's new ad-supported plan may cost between $7 and $9 per month. To put things into perspective, the streaming service offers a basic single-screen plan in the U.S. for $9.99 a month.

  • According to the same article, Netflix will air four minutes of advertisements for every hour of content, which is comparable to what its rivals do
  • Additionally, it stated that it might run advertisements prior to and during a program, but not following an episode

Limited Catalogue And Offline Viewing

During its most recent earnings call, Netflix acknowledged that subscribers to the ad-supported plan wouldn't immediately have access to its entire catalog; this may be because of its licensing agreements with other studios. Additionally, Netflix may soon include the ability to access content offline.

  • Netflix may not broadcast advertisements on kid-friendly programming
  • And it might initially choose not to run advertisements during its original movie programming

Early 2023 Rollout

According to Bloomberg, Netflix's new ad-supported tier might roll out in at least six markets over the final three months of this year, with a potential early 2023 full rollout. But everything could still change.

  • Reed Hastings, co-CEO of Netflix, revealed the firm was exploring at a less expensive, ad-supported option this past April, when it recorded its first membership loss in ten years, reversing years of denying any interest in advertising
  • Next year, the business also intends to start charging for password sharing

Competing streaming platforms such as Hulu and Disney have also made recent announcements of new ad-supported offerings.

Disclaimer

Please note that this article does not constitute investment advice in any form. This article is not a research report and is not intended to serve as the basis for any investment decision. All investments involve risk and the past performance of a security or financial product does not guarantee future returns. Investors have to conduct their own research before conducting any transaction. There is always the risk of losing parts or all of your money when you invest in securities or other financial products.

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