Advertisement? No problem. This isn’t the first time we’ve read the adage that the new TV is the old one. And Netflix is a solid force in the streaming market, one of the leaders in both seniority and share. It makes sense that thousands of users would prefer to access a series of advertisements in exchange for the service. What we did not imagine is that up to 40% of new Netflix subscribers in USA bet on this method.
Netflix’s ad-supported plan pays off
Apparently Kantar’s “Entertainment on Demand” study confirmed the trend: 40% of new Netflix subscribers last quarter switched to the ad-supported model. Cheap is not only cheap, but worth it.
This is also reflected in the GECA study, in the 15th wave of its OTT barometer: 8.6% of Spanish users contracted this Basic plan with Advertising two months after its launch. Among them, more than half had never been customers before. In fact, this model leads us to think that these strategic discounts for certain countries were a great idea if what they are looking for is consolidate their positions in markets where they do not yet have the same hegemony as in USA.
However, it is important to remember that this ad-supported subscription model is very limited. It doesn’t matter if your MacBook Pro can play content in HDR at 5K. Here are the features of the basic plan with ads:
- Quality: video in HD resolution (720p).
- Advertisement: 4 minutes of announcements per hour
- Devices: only one device per account.
- Catalog: incomplete, since it involves a cut catalog, with a good part of the most successful series and films. However, you have full access to Netflix games.
- Price : 5.49 dollars per month.
But let’s be honest: if you only watch series from the iPad or iPhone, this cheap mode is worth it. It’s a cheap toll to have fresh content for any plane or train journey, hassle-free and without spending more data than necessary.
Despite the confusion with shared accounts, Netflix knows what it’s doing. These economic plans are the basis of its new economy in more than 30 countries, including emerging markets like Yemen, Jordan, Libya, Iran, Kenya, Croatia, Slovenia, Bulgaria, Nicaragua, Ecuador, Venezuela, Malaysia, Indonesia, Thailand and the Philippines. It seems like the “let’s kill the ad” curtain of old TV fits right in with today’s streaming.
