March 25, 2023

As I think everyone agrees at the moment, Netflix costs too much, especially given all the competition it has right now. However, instead of lowering the price of existing tiers, Netflix plans to create cheaper tiers and serve ads to viewers.

This is not uncommon in the streaming space, there are ad-supported tiers of many other streaming services, but it’s not the solution customers currently paying $15-20 hope for, as half of the reason most people turn to streaming is to remove Mandatory business breaks. Although Netflix will have fewer ads than cable, but every show.

According to a new Bloomberg reports, we have possible prices for Netflix’s new ad-supported tier, in the range of $7-9. This is similar to Hulu’s ad-based plan, which costs $7, down from $10 on HBO Max.

Netflix is ​​said to be selling 4-minute ads per hour for the service, which Bloomberg reports is “much lower than most of its peers,” but HBO Max also says they offer 4-minute ads per hour. Of course it’s less than cable TV, it’s more like 10-20 minutes of commercials per hour.

This is an odd situation for Netflix, which has long tried to stick to the streaming tradition it started with, like no ads, and if they change course because of competition, I wonder what happens next. Binge-watching so they don’t spend a fortune on a show that people don’t talk about anymore after a weekend? I feel like everything is on the table because Netflix wants to stop losses and grow revenue.

Some estimates put Netflix’s potential gain from the ad-focused tier at $8.5 million. Although it’s unclear how many existing Netflix subscribers are likely to downgrade from higher-priced subscribers to that level, rather than new customers joining a saturated market. But of course, most of the money comes from the ads themselves, and everywhere, Microsoft is the winning bidder to handle Netflix ads. The mega-corporation has a $10 billion advertising business, but it’s rarely talked about because it is.

All of this raises the question of whether time is just a flat loop, and we’re about to go back to subscribing to half a dozen weekly series on ad-supported services that seem as expensive as cable number one.The whole concept of the sustainability of the streaming content model has been called into question in recent years, although clearly we will never literally Going back to cable TV completely and expecting more commercials and maybe less in the future.

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