In July, Netflix entered a partnership with Microsoft to use Bing Ads to power the streaming platform's new upcoming ad-supporting cheaper subscription level. Last month, Netflix confirmed the tier would make its debut in November. Well, here we are and from today (Nov. 3) Netflix Basic with Ads is now available in 12 countries.
According to the company, the new tier brings in a whole new level of customers. It costs $6.99 per month to sign up for Netflix Basic with Ads. Netflix chose Microsoft over Google and Comcast because Microsoft does not have a competing video service.
As for the 12 nations the solution is launching in, they are:
Netflix has previously resisted using ads on its platform. However, the company says the new tier is excellent for advertisers because it allows them to reach younger audiences that do not watch regular TV (or ads).
On the Basic with Ads subscription, users will get ads before, during, and after shows and movies:
“Video quality up to 720p/HD (now for both our Basic with Ads and Basic plans); average of 4 to 5 minutes of ads per hour; a limited number of movies and TV shows won't be available due to licensing restrictions, which we're working on; no ability to download titles.”
Netflix is on a charm offensive to attract as many advertisers to the platform as possible. The partnership with Microsoft helps, but the company also points to the following benefits:
- “Ad Format: At launch, ads will be 15 or 30 seconds in length, which will play before and during shows and films.
- Advertiser Controls: To help advertisers reach the right audience — and ensure our ads are more relevant for consumers — we'll offer broad targeting capabilities by country and genre (e.g. action, drama, romance, sci-fi). Advertisers will also be able to prevent their ads from appearing on content that might be inconsistent with their brand (e.g. sex, nudity or graphic violence).
- Verification Tools: We have partnerships with DoubleVerify and Integral Ad Science to verify the viewability and traffic validity of our ads starting in Q1 2023.
Audience Measurement: To enable advertisers to understand how Netflix can reach their target audience, Nielsen will use its Digital Ad Ratings (DAR) in the U.S. This will become available sometime in 2023 and eventually be reported through Nielsen ONE Ads.”
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