Netflix invents the television of a lifetime
From the day November 10 you can contract the new Netflix subscription. It is the most economical modality, located below the standard. It will cost 5.49 euros per monthand it will be called ‘Basic with Ads‘.
This new plan will reach 12 countries. Almost everything we already know from the basic plan will remain the same. In other words, it will continue to be a plan with 720p/HD resolution and limited to a single user. The big difference is that Netflix will give us an average of 4 or 5 minutes of ads per hour, the secret to be able to considerably reduce the price of the subscription. Regarding Netflix games, they will be present, although in a more limited way.
How will advertising be integrated into Netflix?
First of all, you should know that Netflix it won’t cut you no episode or movie to put you an ad. They will do it before or after a broadcast. The company ensures that they will be 20 second pieces.
For advertisers, Netflix is going to provide a series of tools to be able to segment its customers as much as possible —after all, they know us perfectly by the type of content we see—. Advertisers will take into account what they advertise depending on the movie or television series that we are watching.
On the other hand, Netflix has signed a contract with DoubleVerify and Comprehensive Ad Science so that all the information generated by this new system is recognized as valid and of quality.
Differences from television
The comparison is done by itself. For a company like Netflix to switch to advertising leads us to think that more than inventing something new, they have surrendered to a lifelong model.
Until now, television in Spain had standardized advertising spaces, with a maximum limit of 12 minutes per clock hour. However, the law has been redesigned this year, precisely because the big operators have constantly skipped this limit. Currently, advertising in Spain works by time slots. Between 06:00 and 18:00, the networks can broadcast a total of 144 minutes of advertising. From 6:00 p.m. to the end of the day, the limit is 72 minutes.
This does not apply to Netflix or any type of streaming service that broadcasts advertising. However, if we do calculations, the 5 minutes per hour of Netflix is very close to the television of a lifetime if we compare the last section —which is when more users are in front of the screen—.
More beneficial for Netflix than for the user?
Although many have applauded this move by Netflix, it must be recognized that this membership is not as attractive as it seems. The user only saves 2.5 euros per month in exchange for seeing a considerable amount of advertisements.
For its part, Netflix is going to make very good profits with this new model. If the play goes well, we will soon see how this system is applied to other more advanced memberships.