The online platform for movies and series Netflix introduces a new, cheaper monthly plan ‘Basic with Ads’, for the first time since 2007 advertisements will be displayed. This plan is effective from November 1. will start operating in 12 countries

How much will it cost?

November 1 The Basic with Ads subscription plan will launch in Canada and Mexico on November 3rd. – in Australia, Brazil, France, Germany, Italy, Japan, Spain, South Korea, the United Kingdom, and the United States.

The plan will cost AU$7 per month in Australia, £4.99 in the UK, and US$6.99 in the US. By comparison, Netflix’s current cheapest Basic plan costs $10.99 a month in Australia, £6.99 in the UK, and $9.99 a month in the US.

What is changing?

Netflix CEO Greg Peters has previously said that “a limited number of movies and TV shows will not be available due to licensing restrictions.” Netflix estimates that initially, depending on the country you live in, choosing the Basic with Ads plan will leave 5-10% unwatchable. films and efforts will be made to reduce this number over time.

Basic Ads will prevent users from downloading movies for offline viewing. Users will also only be able to watch Netflix on one device at a time, just like the current Basic plan.

However, if you’re currently on Netflix’s Basic plan, upgrading to the new plan will really give you something – up to 720p HD video quality. Previously, this feature was only available on the Standard (AU$16.99 per month) or Premium (AU$22.99 per month) plans.

What ads will be shown and when?

The ads will be between 15 and 30 seconds long and will be shown before and during shows and movies. There will be no option to skip them, but there will be a frequency cap to prevent viewers from seeing the same ads too often.

Political advertising, guns, tobacco, and get-rich-quick schemes will not be allowed on Netflix. Brands will also be able to refuse to show their ads on content that contains sex scenes, nudity, or violence.

Netflix says that initially, ads will not be shown based on viewers’ personal data and preferences. In addition, there will be no ads in content intended for children under 13, regardless of the profile used.

Why does Netflix offer this?

Netflix believes that it will be able to attract more new users with a cheaper plan. In April, the company posted its first quarterly decline in subscriptions in more than a decade; almost immediately, Netflix executives announced plans to introduce commercials. In July, Netflix reported a drop in subscriptions in the second quarter, with a loss of about 1 million. The company’s market value has fallen by 65 percent over the past year.

Netflix believes that any losses caused by existing subscribers moving from the more expensive plans to Basic with Ads will be offset by new ad revenue.

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Image Credits: Alin Surdu