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Netflix Unveils Affordable Ad-Supported Subscription Plans

The company elaborates on the types of advertisements users will see by stating that they will be 15 or 30 seconds long and play before and during television programmes and movies

October 16, 2022

In response to customer resistance to paying for its regular (and pricey) plans, Netflix has finally unveiled its ad-supported subscription.

The new plan costs approximately Rs 600 ($6.99) per month, which is comparable to Netflix's premium plan in India, which costs Rs 649.

On November 3, 2022, however, the US will introduce the ad-supported "Basic with Ads" plan.

Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, Spain, and the United Kingdom will later offer it.

After the company continued to experience a decline in its subscriber base, Netflix first unveiled its Basic with Ads plan almost six months ago.

Microsoft helped develop this tier. The Basic with Ads plan is comparable to the current ad-free Basic, Standard, and Premium subscriptions in terms of benefits, according to Netflix.

Its attributes include:

-Streaming video in HD (720p) quality.
-Supported one streaming device (mobile, tablet, PC or TV).
-Avg. 4 to 5 minutes of advertisements per hour.
-No download options for titles.
-Restricted selection, but includes Netflix original content.

The company elaborates on the types of advertisements users will see by stating that they will be 15 or 30 seconds long and play before and during television programmes and movies. This model will be used during the launch and could be changed later.

To provide customers with the most pertinent ads, Netflix will also work with agencies. The business, for instance, will collaborate with Nielsen and use its Digital Ad Ratings (DAR) in the US.

"Even though it's just getting started, we're encouraged by the interest from both consumers and the advertising industry and couldn't be more enthusiastic about what's to come. Over time, we anticipate expanding into more nations as we gain knowledge from and improve upon the experience," it reads in a blog post.

Plans for Netflix are quite expensive in the US, especially when we consider exchange rates. Costing $9.99 (about Rs 800) monthly is the entry-level ad-free plan.

The monthly costs for the basic and premium plans are respectively $15.49 (roughly Rs 1,300) and $19.99 (roughly Rs 1,600). So it makes sense that Netflix will initially offer an ad-supported plan.

The cost of the company's plans was reduced in December 2021. The price of the mobile plan right now is Rs 149. Costs for the basic, typical, and premium plans are respectively Rs 199, Rs 499, and Rs 649.

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