Starting next November, Netflix will offer a $5.99 per month ad-supported plan in Canada, as well as 11 other countries.
This new package is in addition to the three already existing offers — Basic, Standard and Premium —, the price of which remains unchanged. The video quality of content with advertising will be the same as that currently available to basic plan subscribers, who currently pay $9.99 monthly. However, the number of series and films will be limited for those who choose the new package with advertising due to licensing restrictions. “A situation we are working on,” the video-on-demand platform said in a press release Thursday.
The download of films and series will also not be included in the new package. Ads will vary in format from 15 to 20 seconds, for a total of four to five minutes of ads per hour of viewing. These will be broadcast before the start of the video and during it, similar to what is currently done on YouTube. Ads will be targeted based on the style of content being viewed and the user’s country. In addition to Canada, a package with ads will also be offered in the United States, France and the United Kingdom, among others.
By offering a less expensive subscription plan, the multinational hopes to rally advertisers who target a younger clientele. The package Basic with advertising is also a promising opportunity for advertisers, who have the opportunity to reach a diverse audience, including younger viewers, who are consuming less and less traditional television content, according to Netflix.
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