Netflix seemed like a strange candidate for an ad-supported plan. After all, its product is designed to be consumed one episode at a time, not interrupted by commercials. But the company has been successful in adapting to changing consumer behavior. With the launch of its lower tier plan using ad-funded viewing, Netflix now has a more affordable option for those who only want limited ads and less content interruptions.
This transition could be a surrender to Amazon’s $970 million deal with United States television network NBCUniversal. With the new plan, viewers will be charged an extra $7.99 per month on top of their current Netflix subscription, ostensibly in order to offset the loss of advertising revenue from Basic TV service.
Netflix announced that ad-supported streaming for tvOS will be available for those who purchase the tier starting on January 15th.tvOS is a new operating system from Apple that was released in September 2015. This announcement comes as Netflix faces competition from services such as Amazon Prime Video, Hulu, and CBS All Access which all offer ad-supported streaming without having to pay a
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Since its launch, Apple TV has been criticized for being one of the more restrictive devices when it comes to streaming services. While this has changed in recent months, users are still unable to access the ads tier on Netflix which is offered on other devices.
Netflix confirmed that the Basic plan with ads is not available on tvOS at launch, but promised that it will be coming soon. The company has yet to provide a timeframe for when this new plan will be available, buttvOS users are encouraged to stay tuned as there may be something more exciting in store.
The tier has yet to become available on Chromecast, Chromecast Ultra, PlayStation 3 and the Netflix app for Windows. This suggests that it is still in development or testing. The lack of support for this tier could mean that it is not as stable or reliable as the other tiers.
It appears that Netflix is happy with the success of its new tier. At the Consumer Electronics Show in Las Vegas, Netflix President of Worldwide Advertising Jeremi Gorman said there is a “broad swath” of advertisers on the platform. This shows that the new tier has been successful in attracting new advertisers and consumers to Netflix. Despite some setbacks like fewer titles, it seems that the platform’s success overall is worth it.
The disappointing number of new subscribers signing up for the cheaper plan suggests that people are not finding the cost savings worth it. The lower-priced plan only offers a monthly subscription for $8, which is much less than the standard $10/month plan. It may be difficult for some to justify paying less than what is standard for Netflix content.
When Netflix rolled out its $6.99/month ad-supported plan in November 2022, it quickly became one of the most popular subscription plans. The Basic with Ads plan has a lower video quality of 720p HD and subscribers can only stream from one device at the same time, but around 5% to 10% of Netflix’s content catalog is unavailable due to licensing restrictions. Plus, subscribers don’t have access to offline viewing with the ad-supported plan. Despite these limitations, the ad-supported plan remains one of the most affordable options for monthly streaming and is perfect for people who only want limited advertising exposure.