Netflix recently moved up the release date for its new and cheaper streaming – ad tier to November 1st beating Disney+ whose release of its ad tier is scheduled for December 8th. Netflix had previously in June announced that it planned to release in the 1st quarter of 2023.
The company’s cheap ad tier cost is not yet confirmed but sources told Variety Magazine the package should range between $7-$9. Disney+ ad tier package is already confirmed to cost $7 and it launches only in the USA. Netflix’s cheap package is scheduled to be released in the USA, Canada, and Germany as more countries follow. I expected the package to be available in Africa as the company tries to fight password sharing by introducing cheap packages like this. But time will tell though.
Netflix has partnered with Microsoft to run the new package and they didn’t stop there. The company recently poached two top executives from Snap, who are qualified and experienced in the ad business. Ad buyers who talked to Variety Magazine cited the amount being charged by Netflix was quite high, actually very high.
Netflix Cost of ADs
Netflix is charging a whopping $65 CPM – amount per a thousand views. Very high compared to the market value which stands at $20. The ad buyers also stated that most customers are not up to it and might not join the program citing they will have to wait and see whether other people will join. The source went on to say that Netflix projects 500,000 registered viewers to the package by end of September to make the Nov 1st deadline. Moreover, the source went on to reveal that Netflix is asking for a commitment of  $ 10 million per year, citing also that it isn’t a fixed price though.
Netflix is set to place 4 minutes of ads per hour of an episode of a series, however, ad placement in movies is yet to be confirmed. What’s your take on this? Give us feedback below, will this also help stop password sharing? Comment down below your thoughts.
