Netflix will introduce a new basic streaming plan this November that would cost $6.99 in hopes of getting new subscribers. The company lost a portion of its loyal customers in the first half of the year, and this strategy is its way of settling its loss.
The $6.99 streaming plan will have four to five minutes of ads per hour, 720p maximum quality, and no downloads. It is $3 less than Netflix’s no-ad tier plan, and lower than HBO Max and Disney+ offers. The company assures that new releases will have limited ads to not ruin the viewing experience; however, five to ten percent of Netflix’s programs will not be available in the ad-supported plan due to licensing restrictions.
Netflix Tries To Settle Loss By Introducing Ad-Supported Plan
Netflix was on the brink of failure after its stock had fallen 62% as of this year. The executives have always opposed the inclusion of commercials, but they changed their minds in April this year. So far, the streaming company has not revealed its estimation of how many viewers would subscribe to the ad-supported plan. The forecast will be made soon after they declare earnings.
There has been tight competition between streaming platforms in the last few years. Since the pandemic happened, people turned to these platforms for comfort and entertainment. The availability, convenience, and affordability of streaming plans have concocted a new era of the viewing experience.
The new Basic with Ads plan will be available in Canada and Mexico on November 1, and in Brazil, the United Kingdom, France, Italy, Germany, Australia, Korea, Japan, and the United States on November 3. A week later, it will be available in Spain.
Subscribers React To New Netflix Plan Offer
Fans on Twitter share their sentiments regarding the platform’s new streaming plan offer, and most reactions are not so positive. Check out their tweets:
While this basic plan offers a more affordable way to access entertainment, it also affects the viewing experience of subscribers. The resolution alone is a huge factor, and removing the option to download episodes makes it more difficult for viewers who do not have a fast internet connection.
Supporting ads is Netflix’s way of encouraging subscribers to upgrade to a higher-tier plan. These ads will be monitored by Microsoft’s technology to provide relevant ads for the right audience. There is really no escape from this business.
Netflix will continue to offer its Basic, Standard, and Premium plans with the same prices and options as they will not be affected by the addition of the ad-supported plan.
