Netflix launches ‘Basic with Ads’ — its much anticipated commercial-supported plan

Marcelo Serafim
Dec 29, 2022
2 min read

Updated: Dec 30, 2022

New York CNN Business —

In 2019, Netflix said in a letter to shareholders “we… are advertising free,” and added that being commercial-free is a “deep part of our brand proposition.”

That all changed Thursday when the streaming leader launched “Basic with Ads,” the platform’s much anticipated ad-supported subscription plan.

The new tier will cost $6.99 a month in the United States where it is now available. It is also being launched in Canada, Australia, Brazil, France, Italy, Germany, Japan, Korea, Mexico, Spain and the United Kingdom at various price points.

The company has said that “current plans and members will not be impacted” and that “‘Basic with Ads’ complements our existing ad-free Basic, Standard and Premium plans.”

The new tier will have most of what’s available with Netflix’s current $9.99 a month Basic plan. However, the “Basic with Ads” option will include an average of four to five minutes of commercials per hour. Those ads will be 15 or 30 seconds in length and will play before and during TV series and movies.

Even though most current subscribers won’t see much of a change — unless they switch to the new plan, of course — the Netflix with ads launch is one of the most significant moments in the company’s 25-year history.

Summarize what you read in the article

1 - What is the story of Netflix?

2 - Why is Netflix changing its service model?

**3 - What is the *decoy strategy in marketing?**

4 - What do you think of the competition in the streaming industry?

5 - How do you feel about ads based products?

6 - What is churn?

Listening

Valuable links

Source - https://edition.cnn.com/2022/11/03/media/netflix-with-ads-launch/index.html

Word of the day (CHURN) - https://www.google.com/search?q=define+churn&oq=define+churn&aqs=chrome..69i57j0i512l9.3153756j1j7&sourceid=chrome&ie=UTF-8

Phrasal verb - merriam-webster.com/dictionary/stick%20to

*Decoy Strategy - https://www.minderest.com/blog/what-is-decoy-effect#:~:text=One%20clear%20example%20of%20the,buying%20based%20on%20their%20needs.

HOMEWORK

Do a research about the competition in the streaming industry (PDF or PPT format) Who are the main players? What are their characteristics? Who is winning the fight? What is the future of streaming?