Many people believed that Netflix’s ad-supported tier would never arrive, yet it is now being prepared. However, it will arrive before the end of this year. Netflix also has to get its content rated ready for this tier in addition to getting adverts to serve to this tier.
Why do I say that? Netflix’s licenses all require that the shows be broadcast without advertisements. This means that the terms of the programmes it has licensed from Sony, Warner Bros., Discovery, Universal, and other sources will need to be modified to include advertisements. If not, Netflix would miss out on a lot of revenue from shows like NCIS and Breaking Bad, two of its most well-known offerings.
This is necessary since studios could also demand a share of the commercials, ranging from 15% to 30%. Which would put them in line with the percentage that Google receives from online and YouTube advertisements. and has been adopted as the industry norm. Both streaming providers and content companies will benefit greatly from this because it will be much more profitable. There’s a good reason why almost all other services now offer both ad-free and ad-supported tiers.
Advertisement IS THIS GOING TO AFFECT ME? This won’t actually have an impact on you as a subscriber. But it might put a cap on how cheap Netflix can offer the ad-supported tier. Less money will be available to cover the monthly fee if they are unable to place advertisements on a significant portion of the licensed content.
Even though Netflix already has a large number of Originals, a sizable portion of its catalog is obtained through licenses from other studios. And Netflix is required to follow their guidelines.
Pricing for Netflix’s ad-supported tier has not yet been disclosed. However, we anticipate paying less than $10 a month. probably around $7. However, whether they offer an ad-supported tier for each of their three current plans or just one that is just like their Standard plan but with advertisements will also depend on whether they do so. Netflix and advertisements still raise a lot of questions.