Netflix should adopt a very different strategy from that of Disney+, by reducing the price of its entry-level subscription.
The bill may be a little less salty at Netflix. While the firm regularly increases the price of its subscriptions, to the chagrin of its users, the arrival of the formula supported by advertising is timely. While it was still very mysterious, Bloomberg brings crucial information on the formula which must be launched at the beginning of next year almost everywhere in the world.
The American media finally lifts the veil on the price of this offer supported by advertising. As a reminder, Netflix is not the only platform to rely on advertising to make ends meet. Disney+ will also include such an offer, except that it will not be synonymous with a price reduction. The latter will adopt the current price, while it will cost two euros more to overcome the pages of advertisements.
It was feared that the N red would adopt the same strategy, that will not be the case according to Bloomberg. The discounted subscription will be displayed at 7 dollars against 9 dollars per month for the current offer. The most popular, offered at $ 15.50 per month, should not change its price.
The arrival of advertising does not imply a reduction of all offers, it will be necessary to be satisfied with limited functionalities. We do not know, for example, how many screens will be offered, or even if it will be possible to take advantage of 4K. As noted Bloomberg : “As the streaming TV pioneer prepares to introduce advertising for the first time, it tries to strike a delicate balance between reaching a more cost-conscious consumer while providing an enjoyable experience.”
Netflix observers are beginning to define the contours of this offer. It will obviously be necessary to deal with 4 minutes of advertising per hour. This is much less than the competition according to sources familiar with the matter. These videos will be broadcast before a program, and during those that last more than an hour. Note that Netflix will remove the possibility of advancing in the reading to avoid them, rather logical.
The firm will partner with Microsoft to integrate these advertising pages. The two companies are already working on the various tools that will allow the platform to attract advertisers. This subscription could allow Netflix to generate moree $8.5 billion by 2027 according to analysts at Ampere Analytics.
Finally, still according to Bloomberg, the platform should not bet on targeted advertising. Most users should therefore see the same ads depending on their country of residence. The firm also wants to ensure that users won’t see the same advertisements over and over again.
In France ?
For now, the offer has not been officially presented in France. However, it is to be expected that it will be introduced in the coming months. The deployment in North America will undoubtedly be used to assess the popularity of such an offer with the public. We can imagine that it will also be offered at two euros less than the basic formula, which amounts to 8.99 euros per month for 1 screen and SD quality (480p). A formula at 6.99 would allow it to align with the competition, which charges more aggressive prices, with more options and no screen or quality limitations.