Netflix Ad-Supported Tier Pricing Could Be Its Undoing
Netflix said that it was still in the initial phase of developing a subscription plan supported by advertising, but rumors seemed to paint different stories. Like any leakage, unofficial details can change or proven to be entirely wrong when the level is aired, but at this time it seems that the video streaming of the video already has most parts. The big exception is that the company may still be in negotiations with studio and content providers to ensure that advertising supports have the best catalog when launched. A new report, however, claims a more affordable level is a mixed bag, and the details – if proven to be truly – can cause consumers to contemplate whether the pro is greater than the cons.
In some ways, almost sounding like Netflix really wants to get new customers – or, at least, to get the missing back. Although the company is not yet in trouble, customer decline is not a joking problem in a cruel industry. Netflix blames the division of accounts that are rampant with people other than family members as one of the reasons for the problem, so that they have begun to crack down on what they consider unauthorized behavior. It is likely not to return the customer’s number, so the company will offer a more affordable subscription rate. Such affordability – if it eventually becomes cheap – will not come without other costs, the most obvious is that users must tolerate seeing advertisements. However, it is likely to not be a loss, and inner people who claim the latest painting images that can make it difficult for some people to accept cheaper plans.
Netflix ad-supported strategy
According to reports from Bloomberg, Netflix can set a level of levels supported by advertisements in a place between $ 7 and $ 9 per month. Streaming services already have a basic subscription of $ 9.99 per month, but it is limited only to 480p video quality. In comparison, the standard platform and the most popular offer high definition streaming up to two devices at a price of $ 15.49 per month.
Depending on the final price chosen by Netflix, the level supported by this ad can be seen as a big savings or agreement breaking. The report does not say whether the quality of streaming for this level is 480p or HD, which can be a determining factor for the success of a new subscription. Another potential problem is that the new plan may not offer Netflix full catalog, and which events and films are included depending on whether the company can make a profitable offer with its partners. Netflix’s original content, of course, is most likely to be available as a whole. The company must definitely hold some juicier titles if you want to encourage customers who are supported by advertising to increase to the pricier level.
One thing that can benefit Netflix is the length of the ad. According to the report, Netflix plans to show advertisements worth four minutes for every hour of streaming, which is much shorter than what most streaming services are supported by other advertisements. Ads reportedly will be displayed before the video starts and every hour afterwards, but no advertisements will be displayed after the video ends, the report claims. Will they be able to skipping is still unknown. Previous reports claim that Netflix will not display advertisements on children’s events, as well as new original films, although the latter only applies to a short period after the inaugural content on the service.
