Netflix the streaming giant has recently launched a new ad-supported tier in 12 countries, which include the US, UK, Japan, Australia among others. A new plan that is called Netflix Basic will be introduced with a cost of $6.99 per month that will include some ads between episodes and movies.
Although, few users know about this second option, or they prefer to stick to the first one. This could be because some of the content is only available as a result of licensing agreements with third party studios.
Another reason could be the love for an ad-free experience, something that Netflix has always been associated with. Others will prefer not to have their binge watching interrupted by short ads even sporadically.
Over time, this ad-tier will attract more potential consumers, especially in those regions where Netflix’s prices are considered as high and competitors are strong. The company also argues that its ad-tier has attracted either new or lapsed users as opposed to the existing users who downgraded their plans. Netflix also ascertains to improve its ad quality, relevance, and provide more choices as well as control for its ad-tier subscribers.
This is a brave step for Netflix, which has always been reluctant to have advertising on its platform. We shall have to find out whether it will be worth it or not. However, most of them still seem to be sticking to the ad-free option.
