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Television

Netflix Ad Tier Launch Moved Up to November To Get Ahead of Disney+ (variety.com) 35

Posted by msmash from the closer-look dept.
Netflix is moving up the timeline for the debut of its cheaper, ad-supported plan to November -- in order to get out before the Dec. 8 launch of the Disney+ tier with advertising. From a report: In July, Netflix told investors that it was targeting the launch of the ad-supported plan "around the early part of 2023." But now, Netflix's ad-supported is set to go live Nov. 1 in multiple countries, including the U.S., Canada, U.K., France and Germany, according to industry sources who have been briefed on the streamer's plans. That would be a little over a month before Disney+ Basic, priced at $7.99/month, hits the market in the U.S.

Netflix declined to comment. "We are still in the early days of deciding how to launch a lower-priced, ad-supported tier and no decisions have been made," a company rep said. Sources confirmed the new Nov. 1 launch date, which was previously reported by the Wall Street Journal. Netflix and its exclusive ad partner, Microsoft, have requested ad buyers submit initial bids next week, with a "soft $65 CPM" -- the cost per thousand views -- meaning that the company is open to negotiating the ad rates. That's well above industry CPMs of sub-$20. Sources speculate Netflix's request for proposals from ad buyers will function as a Dutch auction, with the company looking to see what the market will bear.
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Netflix Ad Tier Launch Moved Up to November To Get Ahead of Disney+ More

Netflix Ad Tier Launch Moved Up to November To Get Ahead of Disney+

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  • Be the first .. (Score:4)

    by PPH ( 736903 ) on Friday September 02, 2022 @09:52AM (#62846435)

    .. to include ads in your service. Sort of like lemmings competing to be the first in line to go over the cliff.

    • Re: (Score:2)

      by splutty ( 43475 )

      Also funny that the price for this ad supported tier is higher than the price I paid when I first joined Netflix.

      Irrelevant to me now, since I canceled my Netflix sub, but still funny.

      • They haven't actually announced a price, yet. From the article:

        > Netflix declined to comment. “We are still in the early days of deciding how to launch a lower-priced, ad-supported tier and no decisions have been made,” a company rep said.

        Maybe you're looking at the Disney+ ad-tier price?

        • Re: (Score:3, Funny)

          by PPH ( 736903 )

          They haven't actually announced a price, yet.

          Zero would be good. That's what I pay for my add supported broadcast TV.

        • Re: (Score:2)

          by splutty ( 43475 )

          Yes. I was. And I was assuming it'd be +- $1 from that price, because they'd be stupid to make it much cheaper or much more expensive.

          • Sure you wouldn't like to perhaps compare things that might be closer together? By any measure you care to compare them, broadcast TV and Netflix are nothing alike. At best, you could claim they're comparable because they both carry "Seinfeld" - but that hardly means they're interchangeable.

            • Sure you wouldn't like to perhaps compare things that might be closer together? By any measure you care to compare them, broadcast TV and Netflix are nothing alike. At best, you could claim they're comparable because they both carry "Seinfeld" - but that hardly means they're interchangeable.

              Comparable would be crackle (free), roku channel (free), youtube(free) and hulu ads ($1/month if you get it on sale)
              There is also pluto (free), tubi (free), and many others.
              One of the more annoying things about streaming services versus broadcast TV is that there is no regulations or rules on how many, how long,
              or how often ads play. This is bad enough when something is completely free but completely unacceptable if you are actually paying for the service.

      • Re: (Score:2)

        by tlhIngan ( 30335 )

        Also funny that the price for this ad supported tier is higher than the price I paid when I first joined Netflix.

        Irrelevant to me now, since I canceled my Netflix sub, but still funny.

        Chances are they'll use this to get subscribers to stick.

        They'll announce like in 2024 they'll eliminate the ad-free plans, but current subscribers on the plans will be grandfathered in until they cancel. So if you want to keep ad-free Netflix, you must subscribe by Dec 31, 2023.

        After that, only the ad plans will be available,

    • Re: (Score:2)

      by thomn8r ( 635504 )

      to include ads in your service. Sort of like lemmings competing to be the first in line to go over the cliff.

      A literal race to the bottom

  • Arrr (Score:2)

    by bazorg ( 911295 )

    and Harr as well.

  • Who would have thought (Score:4, Insightful)

    by Baconsmoke ( 6186954 ) on Friday September 02, 2022 @09:57AM (#62846455)
    That advertising would become a half a trillion dollar a year juggernaut around the world. Not goods, not food, not services... advertising. And we did it to ourselves as a species. We made advertising successful and now this is what we have wrought. An existence where everywhere you look you're being sold something. Fuck. Now I've depressed myself.

  • You'd want to move it BACK to make sure it's BEHIND Disney and you could use it as a selling point. Plus if people leave Disney in droves as a result, you can always scrap your own plans.

    • Re: (Score:2)

      by nadass ( 3963991 )
      Disney already has ad-supported tiers (including ESPN+ which does NOT have an ad-free option!).

      Their new offering is the previous-plan price BUT WITH ADS! (And they're also goosing up the ad-free plans to higher price points).

      So it's truly irrelevant for Disney comparison; it's really an "insider" report about Netflix and Microsoft beginning the ad-buy auction process -- which actually means nothing cuz it's business as usual in the ad-buy marketplace.
  • Not because of this. No, there's just not enough interesting stuff on there for me. Time go round robin. 20 years + subscriber...I hope they keep my favorites for when I return! I'm not loyal or recommending of you anymore, but I will return as a john.

    That said and while I don't really like any of this evolution to ad-based (paying for ads, not free ad-supported) it is nice to smell a whiff of competition finally from Netflix after kinda blowing all their good will, with me anyway. Getting there first i

  • Advertising = manipulation (Score:4, Insightful)

    by sinij ( 911942 ) on Friday September 02, 2022 @10:19AM (#62846521)
    I am not interested in having advertising, designed to manipulate me, interfere with my entertainment. If Netflix inserts ads into my service, I will cancel subscription and move on.
    • First, advertisements themselves do NOT manipulate. Advertising is like a newsboy making announcements at the street corner, yelling at the top of their lungs, about whatever the highest bidder asked -- it could be a product, a service, or even a PSA. Just like then, today they get paid although often at a per-impression rates rather than a flat-rate.

      Second, it's marketing which manipulates your attention and relationship for the purpose of expending more of your resources (time, money, data, etc.) in ex

      • First, advertisements themselves do NOT manipulate.

        Really?

        I would argue otherwise. They show you what the people that buy the ads want the world to look like. That's manipulation.

        Second, every ad is manipulative. Buy! Spend! Look like this! Drive that! Wear this! Be What We Want You To Be, Not Who You Really Are!

        Not manipulative, my ass.

        Duno where you're at, but where I'm at, the ads of the past oh, 5-10 years simply do not match reality at all. Maybe longer. Hard to tell, I cut cable 3 years ago, and am only expose to ads when they're forced into

        • Re: (Score:2)

          by nadass ( 3963991 )
          An advert is as manipulative as you walking by a stranger who's happy about their recent experience (visit at the clinic, discount on a purchase, quality of meal, upgrade of a computer part). In other words, the advertisement itself IS NOT manipulative. Suggestive? Perhaps. Manipulation (proactively engaging your resources)? Not quite.

          Are people easily susceptible (duped) by suggestions from friends and strangers alike? Sure! Just like when you ask a stranger for restaurant recommendations and they talk
      • Bud Light is all the evidence I need to offer that advertising works and manipulates people.

    • So don't drop your tier into the bottom range where ads appear. Problem solved.

      The time you spent reading this post and formulating a response was probably worth more than the difference between those tiers.

      • Re: (Score:2)

        by sinij ( 911942 )

        So don't drop your tier into the bottom range where ads appear. Problem solved.

        Solved for how long?

  • The landscape has changed completely. If I want them to continue pour money into content, the money has to come from somewhere. And I do want them to continue to do it, because once in a while they make something great. And quite often they make something good enough to be watchable television.

    HBO Max shat the bed on their offering. I can't even get it here in Canada. Amazon is getting better, and I get it with Prime - I did watch Outer Range just a month ago. I recently paid for Paramount+ so I could watch

  • Don't want beef, have chicken, or have salad. (Score:3)

    by williamyf ( 227051 ) on Friday September 02, 2022 @11:22AM (#62846781)

    I do not get why so much hate about the Ad-Supported tiers in Netflix, Disney+ and other services... After all, more options per service (with measure) is better.

    Come November (or is it "Movember"?) Netflix will have 3 tiers:

    1.) Low cost ad-subsidized tier. (same shows as normal tier, but lower monthly cost, with ads).
    2.) Normal Tier (higher cost than ads, no ads, normal library, FHD only).
    3.) Premium tier (Higher cost than normal, some premum shows and 4K (among other things) thrown in).

    Everyone is free to subscribe to the tier they want. No one is forcing you to get ads...

    Wanna save a few bucks in your monthly Netflix bill? Go with ads and be merry. Use the ad-time to go pee, or drink a glass or water, or strech... Perhaps you could use the extra bucks to buy a book every month and retake reading, or to subscribe to another streaming service (with ads) to double your library ;-)

    Wanna have netflix without ads? No one is forcing you to have ads, Go normal, netflix will be delighted to get extra money from you.

    Wanna have all the bells and wistles? Go Premium.

    Actually, if you were/are password sharing (which is against Netflix's ToS from thay one), this is a cheaper way to get your own subscription

    Some people claim silly things, like: "this will lead to "content with slots specifically for ads"".

    But this people fail to understand that this is already the case, pretty much all content already has slots for ads. Filmakers KNEW DECADES AGO that eventually their films would eventually be shown on TV with ads, and most of them got that into consideration when making films. Also, many of the programs from Netflix come from abroad, and there, there are commercials too, perhaps with different timings acording to country of origin* (that's why people in the USoA think there are no breaks), but there are slots intended to do the commercial breaks, nonetheless.

    Other sillyness abound...

    * For example, one of the most popular shows on netflix, "La Casa de Papel" comes from spain, there, by law you can not have more than 2 pauses per "clock hour", as opposed to the USoA, that can have as many as 5 per "clock hour"... for a person in the USoA, it may seem that "La Casa de Papel" has no "deliberate breaks to insert ads", but is not the case, it just has less of them.

    • If you don't know what market segmentation is and why it's done, educate yourself before you try lecturing people.

      • Have you something constructive to add, instead of just implying ignorance of something and walking away? In what way does an awareness of market segmentation change the implications of their post?

      • If you don't know what market segmentation is and why it's done, educate yourself before you try lecturing people.

        Electronics Engineer here, well educated about market segments during my MBA.

        May you please point out where did I made my mistakes on my market segmentation and why, so that I can improve?

        Thanks in advance.

    • "Premium Tier" will also eventually have ads. The people with the money are the ones the advertisers want and greed always wins in the end, sadly.

      • "Premium Tier" will also eventually have ads. The people with the money are the ones the advertisers want and greed always wins in the end, sadly.

        "We'll cross that bridge when we get to it." For the time being, premium is sans ads, and ad supported has not even launched yet. If netflix and the advertisers want to poison the well, so be it.

        But, for the record HBO has lasted 49 years (and counting) as a premium channel without ads. Maybe Netflix's premium tier could last a similar amount of time sans ads.

    • Re: (Score:2)

      by mjwx ( 966435 )

      I do not get why so much hate about the Ad-Supported tiers in Netflix, Disney+ and other services... After all, more options per service (with measure) is better.

      Come November (or is it "Movember"?) Netflix will have 3 tiers:

      1.) Low cost ad-subsidized tier. (same shows as normal tier, but lower monthly cost, with ads).
      2.) Normal Tier (higher cost than ads, no ads, normal library, FHD only).
      3.) Premium tier (Higher cost than normal, some premum shows and 4K (among other things) thrown in).

      Everyone is free to subscribe to the tier they want. No one is forcing you to get ads...

      Wanna save a few bucks in your monthly Netflix bill? Go with ads and be merry. Use the ad-time to go pee, or drink a glass or water, or strech... Perhaps you could use the extra bucks to buy a book every month and retake reading, or to subscribe to another streaming service (with ads) to double your library ;-)

      Wanna have netflix without ads? No one is forcing you to have ads, Go normal, netflix will be delighted to get extra money from you.

      That sounds great up until the point they realise they can just foist ads into the higher tiers for extra fun and profit.

      The future will look something like this.

      1. $8 p/m (will need to be adjusted for inflation) with ads, very low quality, restrictions on a lot of content.
      2. $15 p/m (will need to be adjusted for inflation) with ads, moderate quality, restrictions on some content.
      3. $30 p/m (will need to be adjusted for inflation) with ads, maximum permitted quality, access to all content but the

  • No double dipping. We all know that the ad supported plan will quickly end up costing as much as the ad-free plan used to cost, so "ad supported means no fee" is the only way to avoid the slippery slope.

    • It's hardly a slippery slope. For my whole lifetime, "both" has been the norm. Cable television was a cheap form of entertainment because advertising subsidized the creation of content.

      "We all know that the ad supported plan will quickly end up costing as much as the ad-free plan used to cost,"

      I don't think you know that. In fact, I don't think you can point to precedent that says that. Or maybe you can? I haven't seen it.

    • I wouldn't mind if they'd actually put that into law.

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