Some select markets will be the first to have Netflix with ads, sources at Variety and the Wall Street Journal said.
Netflix is finalizing the details of its cheapest plan, but with ads.
Sources from The Wall Street Journal and Variety have revealed details of what Netflix is preparing, with a possible release date sooner than expected.
Ad-supported Netflix: Earlier than expected?
While Netflix indicated that it planned to launch its cheaper ad-supported plans in 2023, some advertisers told the Wall Street Journal that this will happen in less than a couple of months.
The first of November 1 would be the launch date of this new Netflix plan .
Ad-supported Netflix: Which countries will get it first?
Variety reports that according to people in the advertising industry, Netflix will first launch its ad-supported plan in markets such as the United States, Canada, the United Kingdom, France and Germany.
Ad-supported Netflix: How long will the ads last and how much will Netflix charge?
This is a very interesting detail. Netflix and Microsoft , its advertising partner, are asking more from advertisers than any other streaming service.
The Wall Street Journal indicates that Netflix plans to sell 15- and 30-second ads that appear before and during some series/movies.
The streaming giant would limit ads to four minutes of every hour of streaming.
Variety ‘s sources indicate that bidding for advertising on Netflix opens with a CPM (cost per thousand views) of 65 dollars, compared to industry standards: less than 20 dollars.
The same sources believe that Netflix will see with this price how much it can “squeeze”, since the rate can be negotiated.
Netflix would be asking for a minimum commitment of 10 million dollars per year from the agencies with the hope of closing its schedule by September 30 and having its plan ready for the beginning of November.
The Wall Street Journal indicates that Netflix would limit advertising spending per brand to $20 million annually to prevent users from “always seeing the same ad.”