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Netflix to bring forward launch of advertising tier

September 2, 2022 09.07 Europe/London By Julian Clover

Netflix is planning a November 1 launch for its new ad-supported service in a bid to beat Disney to the launch of its own mixed tier.

Last week, executives from Netflix and Microsoft, which is providing the technology to place the ads on the streaming service, met wit ad buyers in the United States. According to the Wall Street Journal, Netflix is asking in the region of $65 per 1,000 viewers, known as the cost per thousand. The figure is significantly higher than most other streaming platforms in the market.

Netflix says it is still in the early days of developing the ad-supported tier. In July, it indicated the new tier would be launching early in 2023, though there had been suggestion it may appear in about half a dozen territories by the end of this year.

After initially launching without ads, the leading streaming services are now all looking at ad supported tiers with versions of Disney+, HBO Max and Paramount+ all in the works.

Netflix plans to sell 15- and 30-second spots that would appear during the pre-roll and within shows themselves. Ads will be restricted to around 4 minutes per hour, significantly less than on broadcast television.

The new Netflix advertising-supported tier will cost subscribers between $7 and $9 per month.

The proposals were first mooted after a troubled first quarter when Netflix lost 200,000 subscribers, the first time it had entered negative territory.

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Filed Under: Newsline, Streaming, Top Story Edited: 5 September 2022 13:06

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About Julian Clover

Julian Clover is a Media and Technology journalist based in Cambridge, UK. He works in online and printed media. Julian is also a voice on local radio. You can talk to Julian on X @julianclover, or by email at jclover@broadbandtvnews.com.

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