Netflix sets prices, launch date for ad-supported plans

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Netflix will officially launch ad-supported plans Nov. 3, 2022 in 13 countries at a reduced rate of $6.99 a month — and will also include a new perk for paid basic users.

“Basic with Ads” will be available initially in the U.S., Canada, Australia, Brazil, France, Germany, Italy, Japan, Korea, Mexico, Spain and the United Kingdom.

Pricing is set at $6.99 U.S., $5.99 a month in Canada, £4.99 or similar pricing in other supported currencies.

The streamer says there will be an average of four to five minutes of advertising per hour of content watched.

Ads will run 15 to 30 seconds in length at launch.

Advertisers will be able to target spends based on viewer country and genre, according to Netflix’s announcement. Brands will also be able to opt-out of having ads show during content that’s flagged with content warnings for sex, nudity, graphic violence and other similar labels.

The announcement from Netflix did not specifically mention whether or not more focused targeting might be available at launch or in the future or how that might work. Earlier in 2022, Netflix announced it would partner with Microsoft to leverage its ad technology.

Microsoft almost certainly has the ability to target beyond just viewer location and genre, but at least some Netflix execs have said they hope to avoid overly-intrusive targeting in their offering.

One challenge Netflix might face, however, is that its targeting features are essentially very similar to what advertisers can get with traditional television ads — since ad time is often sold based on what show is airing and what country or region the feed is sent to.

Netflix says it has partnered with DoubleVerify and Integral Ad Science to allow advertisers to verify viewability and traffic validity starting in 2023. It will also become compatible with Nielsen’s Digital Ad Ratings and Nielsen One platform sometime in 2023.

Along with the cheaper, ad-free plan, Netflix will also upgrade every paid subscriber to be able to watch content in 720p high-definition quality where available.

Previously the “basic” paid plan only offered standard definition quality. Users will still have to increase to standard or premium plans for “full” HD (1080p) or “ultra” (4K and above) HD content.

The HD changes will take effect in November 2022 as well.