The 800lb gorilla is to enter the advertising VOD market in November 2022 with Netflix confirming the launch of its long-expected AVOD offer with what it is calling its Basic with Adverts package.
The AVOD offer will be available in 12 countries from 3 November Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, Spain, the UK and the US. The SVOD leader stressed that with the launch current plans and members will not be impacted and that Basic with Adverts will complement existing advert-free Basic, Standard and Premium plans. In the UK it will cost £4.99 a month.
The AVOD offer came to light after a number of financial quarters that showed Netflix subscriptions plateauing leading some to worry about the company’s growth trajectory especially in markets suffering from high inflation.
In terms of content included in the package, Basic with Adverts will offer what Netflix assures will be a “wide variety” of TV series and films and a personalised viewing experience, running on a range of TV and mobile devices. Users may change or cancel a plan at any time.
Basic with Adverts will offer content at a video quality up to 720p/HD (now for both Basic with Adverts and Basic plans) and average of 4 to 5 minutes of adverts per hour. A limited number of films and TV series won't be available due to what Netflix says are licensing restrictions. There is no ability to download titles.
At launch, adverts will be 15 or 30 seconds in length which will play before and during series and films. To help advertisers reach the right audience and ensure our adverts are more relevant for consumers, Netflix will offer broad targeting capabilities by country and genre (e.g. action, drama, romance, sci-fi). Advertisers will also be able to prevent their adverts from appearing on content that might be inconsistent with their brand.
Commenting on the launch, six months after an AVOD offer was first mooted, Netflix chief operating officer and chief product office Greg Peters said that it would not have been possible to undertake the offer without its team’s hard work or a partnership with Microsoft.
He added: “ The switch from linear is happening at an ever increasing speed, with streaming now surpassing broadcast and cable in the US. We’re confident that with Netflix starting at £4.99 a month, we now have a price and plan for every fan. While it’s still very early days, we’re pleased with the interest from both consumers and the advertising community and couldn’t be more excited about what’s ahead. As we learn from and improve the experience, we expect to launch in more countries over time.”