SAN JOSE: Streaming giant Netflix is adding more options to its ad-supported subscription to attract more users to the cheaper tier, the company said on Wednesday, announcing further moves to increase advertisement revenue.
Subscribers to Netflix’s Standard with Ads plan, which currently costs US$6.99 (RM28 in Malaysia) per month as opposed to US$15.49 (RM45) for the Standard plan, will be available to download content by the end of the week, while the video quality for the tier will be upgraded from 720p to 1080p, Netflix said in a statement.
Users will also be able to watch films and shows on two different devices, according to Netflix.
The streaming giant launched its cheaper, ad-supported tier last year in a bid to boost user numbers. One year after the launch in November 2022, the plan has now reached 15 million monthly subscribers, according to Wednesday’s statement.
The most recent figures put Netflix’s total viewership at some 247 million across all tiers.
Expanding the ad business Netflix is also offering new incentives for advertisers who can now choose to run adds for 10, 20 or 60 seconds on top of the 15- and 30-second slots offered so far.
The streamer is also tapping into the potential of binge-worthy shows, adding a new “binge ad” format that allows users to watch a fourth episode ad-free after sitting through three consecutive ones.
Starting in 2024, Netflix is rolling out title, moment and live sponsorships globally, while also allowing advertisers around the world to “target the most popular series and movies on Netflix” thanks to the launch of its Top 10 rankings.
The changes come as streaming services race to remain competitive. Netflix rival Disney+ rolled out its new, cheaper ad-supported tier across Europe on Wednesday, while Amazon has also said it will introduce a subscription model with limited advertisements on Prime Video from early 2024. – dpa
