Is Netflix adding commercials

It's clear Netflix is adding commercials to the streaming platform. After resisting for years, Netflix is adding commercials. Here's everything you need to know.

So Netflix's Co CEO Ted Sarandos confirmed the news on Thursday that Netflix will be testing the ad-supported, low-budget subscription tier. The company spoke to many potential partners including Comcast, GOOGLE, and NBCUniversal. The news was confirmed when Netflix had a rough patch. They laid off 150 employees for the first time in a decade.

Netflix lost 200,00 subscribers in the first three months of this year. The stock price plunged by 70%, wiping out their $70Billion market capitalization. They also prompted shareholders to file a lawsuit claiming that Netflix misled investors after they declined their subscriber's growth.

In no time, Netflix will be streaming with ads. Compared to its competitors like Amazon Prime, Disney + Hotstar, and others, Netflix created a strong base as an essential streaming Platform. The best part about watching shows on movies was that they came with no ads. However, those who want to pay less can still buy a plan which supports ads. Now that they are launching commercials, when does it start?

As per media reports, Netflix will introduce the commercial-supported tier on Tuesday, November 1, 2022, in Canada and Mexico. Netflix will roll out the Plan in the UK, USA, Australia, France, Japan, and other countries on November 3, 2022. While in Spain, it will be launched on November 10.

Netflix's c tier will work for five minutes for every hour of the watch by the subscribers. The commercial will be added to the movies and shows before, during, and after the movie/show costs. The tier also has lower video quality than the standard and premium plans.

Netflix aims to target countries and genres to help advertisers reach the audience and ensure the ads are relevant.

Statement by Netflix

As per Netflix, "Advertisers will also be able to prevent their ads from appearing on content that might be inconsistent with their brand (e.g. sex, nudity or graphic violence)," 
The company is working with ratings tracker Nielsen in the US in 2023 "to enable advertisers to understand how Netflix can reach their target audience."
"While it's still very early days, we're pleased with the interest from both consumers and the advertising community — and couldn't be more excited about what's ahead," Netflix stated.

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Let's learn about Netflix's pricing policy

The ad tier support plan is the debut of Netflix in the history of 25 years of the streaming platform. The CEO confirmed they were adding commercials to the streaming platform in April, as Reed was keen on not adding commercials to the platform and pushed it for years.

"We … are advertising free," Netflix said in a letter to shareholders in 2019. "That remains a deep part of our brand proposition." But after the rough patch in 2022, the streaming platform has to introduce commercials.

The company lost many subscribers and billions in market cap. It will be the first time in history that they saw a loss for three months straight, laying off employees, which has been a question of the viability of the whole streaming platform. Netflix also announced it would partner with Microsoft to increase sales and technology for this subscription plan.

Netflix also needs huge sums, and ads are a way to earn revenue. However, it doesn't mean every Plan will have ads; there are four plans, and the standard and premium plans come without ads.

However, the ad-supported tier is much cheaper than the other plans. The streaming platform Netflix will now look different to everyone who has used it for the longest time.

Netflix's ad-supported tier will cost subscribers $6.99 Per Month

While the tier which does not support ads, or say the premium and standard plans come with the following prices.

Basic Plan- $9.99

Standard Plan- $15.49

Premium Plan-$19.99

However, the ad-supported Plan has only been introduced in 12 countries. While some reports also claim that the ad supposed tier may have only some of the content available on Standard and Premium Plans.

Why the difference in the tier plans?

Compared to the four tiers, the tier supporting ad will only allow one device to access Netflix. It also won't support offline playback. The entire library plays beyond 720px.
The basic tier will let you access the entire library. However, it only allows one viewer at a time.

It also comes with the same resolution as the tier which supports ads. Now for the standard tier, one can upgrade it to two devices, and it provides a 1080px resolution. The premium plan supports four devices, and the entire content can be viewed on Ultra Hd. Now all you need to do is look for the Plan that's convenient for you.