Welcome to the Ad-supported world
Welcome to the Ad-supported world
The Streaming Lab - MENA #21
In this week’s issue, I‘m reviewing Netflix upcoming ad-supported plan.
The Media industry will never cease to amaze me. Disruptors can get disrupted in a few years, and Netflix is no exception. After leading the streaming universe for more than a decade, the global giant has to catchup on hybrid Advertising models.
But evolving with more than 220 million clients is not an easy game, even more for a company that built its reputation on statements like this one:
“Our members control what they want to watch, when they want it, with no ads, in one simple subscription.”
It’s now time for Netflix to change the About page on their corporate website, because in less than 6 months, they designed a lower priced ads plan, found the right Ad Tech partners and are ready to launch in 12 countries.
Here’s how this ad-supported model works for Netflix:
The 4 plans and their main parameters
The full pricing strategy in 12 countries
What advertisers can expect from the new Ad-supported plan
Bonus: details about WATCH IT standard with ads plan
The 4 plans and their parameters
The new tier, called Basic with Ads will sit next to Netflix existing ad-free Basic, Standard and Premium plans. Basic with Ads will offer all the features that are part of the Basic plan, with some differences:
Users will have to watch an average of 4 to 5 minutes of ads per hour
A limited number of movies and TV shows won't be available due to licensing restrictions
The video quality will now be limited to 720p
Subscribers won’t be able to download titles
Only 1 concurrent stream will be authorized
The full pricing strategy in 12 countries
Here is a list of Netflix monthly subscription fees, in local currency:
Country: Basic with Ads - Basic - Standard - Premium
Australia: AU$6.99 - AU$10.99 - AU$16.99 - AU$22.99
Brazil: R$18.90 - R$25.90 - R$39.90 - R$55.90
Canada: 5.99 CAD - 9.99 CAD - 16.49 CAD - 20.99 CAD
France: 5.99€ - 8.99€ - 13.49€ - 17.99€
Germany: 4.99€ - 7.99€ - 12.99€ - 17.99€
Italy: 5.49€ - 7.99€ - 12.99€ - 17.99€
Japan: 790 JPY - 990 JPY - 1,490 JPY - 1,980 JPY
Korea: 5,500 KRW - 9,500 KRW - 13,500 KRW -17,000 KRW
Mexico: $99 MXN - $139 MXN - $219 MXN - $299 MXN
Spain: 5.49€ - 7.99€ - 12.99€ - 17.99€
UK: £4.99 - £6.99 - £10.99 - £15.99
US: $6.99 - $9.99 - $15.99 - $19.99
I also compared all the packages in US$, ranked by the cost of the Basic with Ads plan:
As you can see, prices can vary a lot between countries and regions. I can’t wait to know what would be the cost of the ads plan in countries where the entry level premium tier is already very low (Mobile plan monthly fee in India is $1.81).
What Advertisers can expect from Netflix Ad-supported plan?
Netflix will offer “a new way to reach a diverse audience who don’t always watch linear TV, in a premium environment with seamless, high-resolution ads experience “.
The streaming giant will generate broad targeting capabilities by country and genre to help advertisers reach the right audience and make sure the Ads are relevant for their subscribers.
Ads will be 15 or 30 seconds in length and will play during shows and films as pre-rolls and mi-rolls.
Netflix already implemented partnerships with DoubleVerify and Integral Ad Science to verify the view-ability and the traffic validity of their future Ads. Advertisers will also be able to prevent their ads from appearing on content that might be inconsistent with their brands.
The streaming giant will also use Nielsen Digital Ad Ratings (DAR) in the U.S to enable advertisers to understand how they can reach their target audience.
Bonus: WATCH IT standard with ads plan
The Ad-Supported model on an SVOD ecosystem is not new. Many other players in the US are already offering it to their subscribers like HBO Max or Discovery+. But it’s the first time a global OTT giant with more than 220 million subscribers is experimenting it.
In MENA, the Egyptian SVOD player WATCH IT became the first OTT service from the region to offer a similar model. Here are the main parameters:
Standard - with ads
1 (concurrent) screen: 50 EGP / $3.81 ( discount 14.99 EGP / $0.76)
2 screens: 80 EGP / $4.06 (discount 24.99 EGP / $1.27)
3 screens: 110 EGP / $5.59 (Discount 39.99 EGP / $2.03)
Premium - ad free
1 screen: 75 EGP / $3.81
2 screen: 99 EGP / $5.03
3 screens: 120 EGP / $6.10
You can find below an Ad example from Etisalat:
I don’t have a lot a lot of information to share with you for now but trust me, I’ll keep you informed!
That’s all for today, all the details available to better understand Netflix new Ad-supported plan.
See you online next week. Until then, enjoy PSG vs. Olympique de Marseille on TOD this Sunday.
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→ The local OTT ecosystem in MENA: Learn everything about the local streaming services in the region. Get full access here.
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