Netflix With Ads: Price, When to Subscribe and Everything We Know so Far
Ever since Netflix converted its mail order DVD business to a streaming service, it has set the tone for the streaming industry. Yes, Amazon launched Prime Video along with their free shipping subscription, and Hulu went from recent TV episodes to original content. All eyes have been on Netflix though as they gained subscribers and inspired Apple, Disney, Warner Media, Paramount, NBC Universal and the short-lived Quibi to launch their own. The Netflix ad supported service has been rumored for a while and now they have announced its launch.
Netflix announced new ad supported tiers on its media website on Oct. 13. There were three separate announcements, so Showbiz Cheat Sheet is here to help Netflix subscribers consider changing their monthly rate.
How much does Netflix with ads cost?
Netflix announced Netflix Basic with Ads in the U.S., Canada, and U.K. The U.S. version will cost $6.99, $5.99 in Canada which is even less with the Canadian dollar, and 4.99 in the U.K. which may end up being more with the British pound. Competitor Hulu’s ad supported tier is $7.99 and HBO Max still charges $9.99 with ads, for comparison. Either Peacock subscription has ads, but you could pay $4.99 for more or $9.99 for less. Paramount+ offers an ad supported tier for $4.99 and completely ad free for $9.99.
Netflix promises 4-5 minutes of ads per hour, which is far less than broadcast television. Network shows are only 42 minutes, leaving 18 minutes of ads per hour. Netflix demonstrated a 30 second NYX lip gloss ad at the beginning of Emily in Paris in a press call on Oct. 13, and a 15 second L’Oreal ad after a mid-show fade to black.
When does Netflix Basic with Ads launch?
Netflix Basic with Ads will become available on Nov. 3 at 9 AM PT in the U.S., Nov. 1 at 9AM PT in Canada, Nov. 3 at 4 PM GMT in England. Australia, Brazil, France, Germany, Italy, Japan, Korea, Mexico, and Spain will also get access to the Netflix Basic with Ads plan. To help them target ads, Netflix will collect date of birth and gender, but that is the only data they will share with advertisers. Political ads are also not going to be allowed, nor ads for products like fireworks or guns, or suspected “get rich quick schemes.”
Some titles may not be available on Basic with Ads due to licensing issues, but as little as 5% of their content. Netflix promises to continue to work on to get as complete a library as possible. Basic with Ads won’t allow downloads on devices due to tech issues. Netflix also gives advertisers the choice of which content in which they appear.
A commercial endeavor
The big questions Netflix subscribers must ask is how much they need to save money and how much they mind watching ads. For 4K subscribers, Netflix costs as much as $20 monthly. On top of all the other streaming services, cutting that by more than half is a significant savings. Netflix Basic with Ads won’t do 4K, but even if you’re only paying for HD, it’s still half the basic ad free service. And they’re bumping the resolution from 480p to 720.
A big consideration will be how Netflix handles its ads. There are good ways and bad ways. Peacock probably does it best. When you watch a movie on Peacock, it plays all the ads for 2-3 minutes up front. Then you can watch the whole movie uninterrupted. Ad supported services like Tubi do interrupt the movie periodically, but honestly they’re not that obtrusive either. Plus, Tubi’s extensive content would be worth subscribing to anyway. Netflix said they are considering having only a “preroll” of ads for new release movies, but more interruptions for older ones.
Sponsors don’t want to hear this, but for the viewer, the ad break can be a built in pee break. You can’t skip it, so rather than pause the content, just wait until the ad and you’ve got at least 2 minutes.
Netflix continues to offer Basic for $9.99, Standard for $15.49 and Premium for $19.99. Disney+ ranges from $7.99 – $13.99 for bundles. Hulu alone ranges from $14.99 for ad free to $75.99 for Hulu with Live TV and bundles. HBO Max is also $14.99 without ads. Only Apple TV+ remains $4.99/month with no ads. Prime subscription with free shipping is $14.99/month, though Prime Video only is only $8.99 and they offer student pricing.
