It seems like the ad tier of Netflix will launch sooner than expected. Yes, it was mooted to arrive early in 2023, but the streaming service has recently told potential advertisers that the ad-supported tier will launch in November.
But what would this early launch of the tier mean? The answer is pretty obvious! Disney Plus plans to launch the same type of tier on 8th December. And Netflix has decided to compete with Disney Plus regarding which platform releases the ad tier first.
Reportedly, the ad tier of Netflix is ready to launch on 1st November in different territories. That includes the USA, UK, France, Canada, and Germany.
However, the streaming giant has made no official announcement regarding the matter. According to Netflix, “We are still in the early days of deciding how to launch a lower-priced, ad-supported tier and no decisions have been made.”
Furthermore, according to the report, many advertisers have already balked at the high ad rate of the streaming platform. However, Netflix could be conducting something that is known as a ‘Dutch auction.’
In that, the price will keep dropping up until the point where it finds enough buyers. It is basically a way to find out the biggest spenders easily.
So, what does the minimum spending commitment look like? According to the report, the platform asks for a minimum commitment of $10 million. The platform has told the ad agencies that the ad tier should have 500 thousand subscribers by 2022.
Now, 2022 is almost over and if, according to the previous announcement, the ad tier was supposed to launch in early 2023, why is the platform making such promises to the ad agencies?
Nonetheless, the streaming giant has partnered with Microsoft as its global technology and advertising partner. And if you want to get the ad tier, you should know that it will not contain the entire catalog of Netflix.
You will need to upgrade to access the content unavailable in the tier. Yes, that is undoubtedly a money-making move from the streaming service.
Furthermore, you might be capable of viewing some content without seeing the ads. Some of these include kid’s shows and Netflix original films.
Also, according to the code from the iOS app, the ad tier might not even allow the users to download shows for offline viewing.
So, it seems like you will be missing out on many things to save some money with the ad tier. However, nothing is set to the stones. The streaming giant should let the users know all about the ad tier when it finally arrives.