Streaming giant Netflix will tomorrow launch in the UK its new ad-supported subscription, Basic with ads, costing £4.99/month or some £2 cheaper than the basic membership plan.
Viewers can expect four minutes of adverts for every hour of content watched, plus some unavailable content for ‘basic with ads’ users.
The Silicon Valley-based organisation renowned for its effective use of data-based user targeting will personalise adverts dependent on a viewer’s favourite genres or watch habits.
Already in place in Canada, the scheme will be available in Australia, the US, the UK, and 8 other countries and is aimed at customers who have cancelled due to cost-of-living concerns.
Reports suggest the cost to advertisers is US$20mln per slot with information and data firm Nielsen providing the ad-based shows with a viewing rating.
Management hopes that ads, a partnership with Microsoft and password-sharing crackdowns will steady a listing ship as Netflix battles to recover ground lost after the unwinding of the Covid lockdown boost.
Analysts will be watching carefully to see if the ad service cannibalises the current subscriber customer base and if the reduced fees shrink users of Netflix’s premium payment plan.
Netflix's share price was US$286.75 overnight, down 1.76%.