Netflix confirms commercials are coming to streaming service

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By Carina Murphy

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It's official - ads are coming to Netflix.

The streaming giant announced in a press release yesterday (October 3) that they'd be ditching their subscription-only model and bringing in advertisements in November 2022.

In a clear bid to turn the tide and stop losing customers, the platform - which hemorrhaged over a million subscribers in the first half of this year per BBC News - is introducing cheaper subscription packages that include ads.

The new plan will launch on November 3 and be available in 12 countries including the US, UK, Canada, Mexico, and Australia. It will cost $6.99 a month and require subscribers to expect an average of four to five minutes of commercials per hour.

For those who'd rather pay more to skip the ads, there will still be membership options that allow them to enjoy ad-free viewing. Basic, standard, and premium subscription packages priced at $9.99, $15.49, and $19.99 will all continue to include commercial-free entertainment.

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Credit: Cyberstock / Alamy

In a press release, Netflix announced that they had introduced the cheaper membership in order to have a "price and plan for every fan."

"We’re confident that with Netflix starting at $6.99 a month, we now have a price and plan for every fan," the platform wrote.

"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," Netflix added.

Many of the streaming platform's main competitors have already announced their plans to move to a similar, ad-supported subscription model.

Disney+ is due to launch their cheaper, commercial-supported membership plan in the US this December, starting at $7.99 a month.

Netflix Co-CEO Ted Sarandos first revealed the company's intentions to bring in advertisements at this summer's Cannes Lion Advertising Festival.

Speaking to Sway podcast host Kara Swisher, Sarandos outlined how Netflix plans to bring in ads - but only for users who are okay with viewing them.

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Ted Sarandos. Credit: Erik Pendzich / Alamy

"We’ve left a big customer segment off the table, which is people who say: 'Hey, Netflix is too expensive for me and I don’t mind advertising,'" Sarandos told Sway podcast host Kara Swisher, per The Hollywood Reporter.

"We adding an ad tier; we’re not adding ads to Netflix as you know it today. We’re adding an ad tier for folks who say, 'Hey, I want a lower price and I’ll watch ads,'" Sarandos added.

Featured Image Credit: Ink Drop / Alamy

Netflix confirms commercials are coming to streaming service

vt-author-image

By Carina Murphy

Article saved!Article saved!

It's official - ads are coming to Netflix.

The streaming giant announced in a press release yesterday (October 3) that they'd be ditching their subscription-only model and bringing in advertisements in November 2022.

In a clear bid to turn the tide and stop losing customers, the platform - which hemorrhaged over a million subscribers in the first half of this year per BBC News - is introducing cheaper subscription packages that include ads.

The new plan will launch on November 3 and be available in 12 countries including the US, UK, Canada, Mexico, and Australia. It will cost $6.99 a month and require subscribers to expect an average of four to five minutes of commercials per hour.

For those who'd rather pay more to skip the ads, there will still be membership options that allow them to enjoy ad-free viewing. Basic, standard, and premium subscription packages priced at $9.99, $15.49, and $19.99 will all continue to include commercial-free entertainment.

wp-image-1263158885 size-full
Credit: Cyberstock / Alamy

In a press release, Netflix announced that they had introduced the cheaper membership in order to have a "price and plan for every fan."

"We’re confident that with Netflix starting at $6.99 a month, we now have a price and plan for every fan," the platform wrote.

"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," Netflix added.

Many of the streaming platform's main competitors have already announced their plans to move to a similar, ad-supported subscription model.

Disney+ is due to launch their cheaper, commercial-supported membership plan in the US this December, starting at $7.99 a month.

Netflix Co-CEO Ted Sarandos first revealed the company's intentions to bring in advertisements at this summer's Cannes Lion Advertising Festival.

Speaking to Sway podcast host Kara Swisher, Sarandos outlined how Netflix plans to bring in ads - but only for users who are okay with viewing them.

wp-image-1263159566 size-full
Ted Sarandos. Credit: Erik Pendzich / Alamy

"We’ve left a big customer segment off the table, which is people who say: 'Hey, Netflix is too expensive for me and I don’t mind advertising,'" Sarandos told Sway podcast host Kara Swisher, per The Hollywood Reporter.

"We adding an ad tier; we’re not adding ads to Netflix as you know it today. We’re adding an ad tier for folks who say, 'Hey, I want a lower price and I’ll watch ads,'" Sarandos added.

Featured Image Credit: Ink Drop / Alamy