After much discussion, adverts are finally coming to Netflix. A new £4.99 tier called “Basic with Adverts” will launch in the UK on 3rd November. It will also be available in 11 other countries, including the US. Netflix is being quite strict about what content will have adverts and how many adverts users will see (around 4 minutes per hour). It is working exclusively with a Microsoft-owned adtech firm to implement the introduction of adverts.
The streaming giant is looking to increase both its subscriber base and the amount of money it makes from each subscriber. Reporting suggests that big-name brands are interested in being the first to advertise on Netflix.
There is, of course, always a risk of cannibalising your own audience. Maybe some subscribers who would have unthinkingly kept a higher-priced package will now downgrade. I also find it hard to imagine how a cheaper tier is going to seriously stop password sharing, another thing Netflix wants to crack down on. It will take a few quarters to see how it all plays out.
One of the journalists covering this, Catherine Perloff, platforms reporter at AdWeek, joined host Charlotte Henry to discuss how marketers and media buyers are reacting to the ability to the prospect of advertising on Netflix, how the streamer is handling the technology to make it happen, and when we might know if it is actually working for everybody involved.
Netflix Starting From £4.99 a Month -Press Release
A Technical Netflixcession - The Addition podcast
Catherine Perloff on Twitter
Charlotte Henry on Twitter