Netflix to launch ad-supported pricing tier in November ahead of December Disney+ launch

Netflix is ​​looking to bring forward the launch of its ad-supported pricing tier to launch in November, which will allow the streamer to get ahead of Disney+ when it launches its own ad-supported model on December 8, according to multiple media reports and it was first reported. time. by the Wall Street Journal.

“We are still in the early days of deciding how to launch a lower priced tier of advertising and no decision has been made. So this is all just speculation at this point,” a Netflix spokesperson told TheWrap.

Although Netflix said in its July investor call that it expected to launch ads on Netflix in early 2023, the WSJ reported Thursday that Netflix told several ad buyers that an ad-supported model would launch on November 1, with Variety. adding that the service would launch in the US, as well as Canada and other international territories.

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In addition to getting ahead of Disney+, moving up the planned launch could also put them in a position to capitalize on some midterm election expenses.

WSJ also says that from meetings ad buyers had with the streamer, Netflix is ​​looking to charge $65 for reaching 1,000 viewers, which would be significantly higher than similar models on other streaming services. Some of the buyers added that Netflix is ​​also seeking to cap the amount a single brand can spend annually at $20 million to avoid excessive saturation of a particular ad or brand.

According to the WSJ, the total ad load for TV shows would be about four minutes per hour of programming, which is much less than traditional linear TV ads, and those ads would play before the movies. They will also allow brands to target viewers who watch specific genres of shows, those in the Top 10 most-watched shows, or target ads based on country.

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Netflix recently partnered with Microsoft on its AVOD plans, and the announced early 2023 launch was later than originally expected. Some analysts thought that teaming up with Microsoft over other partners like Google, Comcast or Roku, which have more established infrastructures, would delay its implementation.

However, Co-CEO Ted Sarandos assured on the July call that the vast majority of Netflix content today could be offered today with ads implemented out of the box and that an ad-based tier can be released without having to obtain any additional content rights. . .

Read the full report via the Wall Street Journal.

Brandon Katz contributed to this report.

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