Netflix users may subscribe to the service for $6.99 per month, but the caveat is that the plan includes ads. The company published One Year Into Netflix Ads this week on the official blog to look back and into the future of ads on the platform.
According to the post, Netflix’s Standard with Ads plan has reached 15 million global monthly active users already. This may not look like much, when compared to the 247 million total subscribers, but the number is growing significantly.
Netflix has a partnership with Microsoft Advertising to deliver adverts to viewers. The company announced a number of new features and changes for advertisers and also for users subscribed to the ad-powered plan.
Binge Ad format and sponsorships
Netflix plans to introduce the binge ad format in the first quarter of 2024. Netflix customers who watch four episodes of a show in a row will get the fourth episode ad-free.
It is unclear if this new format will impact the overall time that advertisement plays per hour on Netflix.
Sponsorships are already available in the United States. Netflix plans to expand these globally in 2024.
Three types of sponsorships are available: title, moment and live sponsorships. Here is what they represent:
- Title sponsorships are tied to specific titles.
- Moment sponsorships allow advertisers to tap into local holidays.
- Live sponsorships are available for live events, such as Netflix’s live sports event, the Netflix Cup.
Other advertising changes
Netflix announced a number of additional changes. New playtimes are available for ads. The service started with 15 and 30 second ads initially. Advertisers may now book 10, 20 and 60 seconds ads globally as well.
Also new are new advertising categories, including dating, pharma and enhanced financial services.
Another change affects the features of the Standard with Ads plan. Netflix notes that it includes 1080p quality now, lets users watch two concurrent streams and that downloads will also become available.
Netflix writes:
All members of the ad-supported plan will be able to download their favorite series and movies, making Netflix the only ad-supported streamer to offer downloads.
Netflix does not explain how this is going to work. It is likely that ads are downloaded along with series and movies. Downloads are a welcome feature, as it gives subscribers the option to watch content while offline, e.g., while travelling.
All paid Netflix plans support downloads once the change lands.
Closing Words
The advertising gamble along with the crackdown on password sharing seems to pay off for Netflix. These helped the company certainly increase its subscriber count.
Whether it is a good strategy in the long run remains to be seen. Netflix announced price increases in several regions recently, but only for ad-free plans.
Clearly, most of the changes benefit Netflix and advertisers only. The new binge watching format sounds like a nice improvement. The majority of changes focus on expanding ads on Netflix.