Finally, Some (Vague) Details on the Netflix Ad-Supported Tier
Since their announcement of the pending rollout of an ad-supported tier, we’ve heard very little in concrete details from Netflix. Finally, we have a little more information. Blake & Wang P.A entertainment lawyer, Brandon Blake, breaks down what we know.
The Key Questions
For consumers interested in the slow boiling promised tier, two key questions remain- How much, and how many commercials will they be forced to sit through?
For the later question, at least, we finally have an answer of sorts. Four minutes of ads to every hour of programming. On the former, it’s still a lot vaguer, but we’ve been promised a price point that will land between $9 and $7 a month. The launch date is still set for later this year.
Ad vs Premium
So we’re looking at roughly half the current Netflix price of $15.49, assuming that doesn’t see a nudge upwards along the lines of the newer Disney model. It also looks quite solid next to their premium subscription of $19.99. It doesn’t compare so well, however, to their other offerings, namely the limited $9.99 subscription which limits you to one screen and standard definition only. For single households, at least, that may remain more attractive than ad-loaded content.
The plan will roll out gradually, entering the test phase in 6 markets at first. They have confirmed that ads will run before and after, not during, content. It seems they’re also making some strides to prevent viewer fatigue with the same adverts repetitively, too. Interested buyers are being asked to take smaller packages at first, or offer varied versions of adverts, for this very reason.
While it’s still not the firmest of details, it’s nice to finally see some concrete information on their plans. The real question remains, of course- is it enough to buoy Netflix out of its recent troubles, or will it be too little, too late.
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