the staff of the Ridgewood blog
Ridgewood NJ, Netflix and chill with advertising, Netflix launches its ad-supported tier in the US for $6.99 a month. The company is currently still in talks with several major studios to finalize licensing agreements. The new tier doesn’t include Netflix’s complete library. Customers will see around four to five minutes of ads per hour of content.
The Los Gatos, Calif., company has so far secured big-name advertisers for its initial launch and hired new senior ad industry executives to help develop its business, but it continues to haggle with several major studios for the right to run ads against their content in the new service or put their content on the ad tier, according to people familiar with the matter.
The launch of the company’s ad-supported tier of service, called “Basic with Ads,” comes a month before rival Disney+ starts its first ad-backed plan and as Netflix tries to boost subscriber growth and revenue after a tumultuous 2022. New ad-backed plans are important elements of a push within the streaming industry to make more revenue per subscriber by offering lower-cost plans that let consumers pay less in exchange for watching ads.
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