Netflix Will Show 4 Mins Of Advertisement Per Hour; Partners With Microsoft For Ad-Supported Subscription

Netflix is planning to start charging $7 to $9 per month for its customers. The OTT channel will be charging this amount for its new plan that supports advertising. 

Netflix Will Show 4 Mins Of Advertisement Per Hour; Partners With Microsoft For Ad-Supported Subscription

The company intends to launch its low-cost option in at least a half-dozen geographies in the final three months of the year. According to the report, the full rollout may have to wait until early next year

Netflix To Charge $7 to $9 per month For Ad-Based Plan

According to people familiar with the matter, it plans to sell around four minutes of commercials per hour for the ad-supported service, showing ads before and during the shows. The streaming service refused to comment on the report or its pricing strategy.

Walt Disney Co announced in March that it will launch a cheaper, ad-supported version of its Disney+ streaming service later this year.

Netflix’s goal is to attract subscribers who are willing to watch shows with advertisements at a price that is nearly half of its current monthly fee of $15.49.

The ad-supported subscription plan comes after the company reported a loss of about 200,000 subscribers in the first quarter of this year due to rising inflation squeezing consumer spending.

In april, Chief executive Reed Hastings had said, “Those who have followed Netflix know that I’ve been against the complexity of advertising, and a big fan of the simplicity of subscription. But as much as I’m a fan of that, I’m a bigger fan of consumer choice.”

Netflix And Microsoft To Launch Ad-Based Subscriptions

Netflix and Microsoft have partnered up to launch the first ad-supported subscription of Netflix. 

Netflix, in a note to its employees, had told that the company could introduce its lower-priced ad-supported tier by the end of the year.

Although it’s still not known when the new ad-supported model will launch, both firms revealed the most recent information in their own blogs. The subscription’s specifics have not yet been disclosed.

Microsoft claims to be “thrilled” to be chosen as Netflix’s sales and technology partner. Marketers who use Microsoft for their advertising requirements will get access to linked TV inventory and the Netflix audience. The only way to access any of the advertisements displayed on Netflix will be through the Microsoft platform.

According to Netflix, both new and existing subscribers would still have access to its current ad-free basic, standard, and premium plans.

To launch the ad-supported subscription model, Netflix began discussions with Warner Bros, Universal, and Sony Pictures Television. 

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