Netflix updates its low-cost, ad-supported subscription plan

In mid-October last year, Netflix launched an ad-supported subscription tier at a lower price point. After nearly a year, Netflix has announced enhancements to the user experience for this plan. These improvements include an upgrade from the previously limited 720p video quality to an option for 1080p, as well as a download feature for offline viewing. Moreover, they are introducing a mechanism that allows uninterrupted viewing without ads on the fourth consecutive episode, aimed at attracting more viewership.

The ad-supported subscription tier is currently maintained at $6.99 per month and permits streaming on up to two devices concurrently. The quality upgrade to 1080p is part of this new update.

The option for downloading content will become available soon, although it is uncertain whether advertisements will accompany the downloaded content. The ad-free experience in the fourth episode will be officially implemented at the beginning of 2024.

In addition to improving user experience, Netflix is also enhancing the ad-supported tier by introducing new advertising options, including presenting ads through sponsorship naming and planning to integrate QR Code-based ads at the beginning of 2024. This is expected to encourage user interaction through mobile scanning, initially rolling out in the U.S. market.

Furthermore, the advertisement format will expand from the current 15 and 30-second spots to include 10, 20, and 60-second intervals, with plans to deploy globally. Advertisers will also have the option to increase their ad placement in the top 10 trending viewership selections. Regarding the measurement of advertising effectiveness, Netflix is partnering with third-party agencies such as Integral Ad Science and DoubleVerify, and in the U.S., collaborating with Nielsen for the Nielsen ONE advertising effectiveness report, allowing advertisers to gauge the impact of their ads more easily.