Netflix is dismissing a Wall Street Journal report that it wants to launch its anticipated ad-supported tier on Nov. 1, much earlier than its previous mid-2023 guidance.
The streaming company also called it “speculation” that it wants to charge advertisers around $65 per 1,000 impressions, which would be a particularly high “CPM” in the context of the broader ad-supported streaming business.
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The OG ad-supported subscription service Hulu has had an ad-supported option from the day it launched back in 2007. It only added the ad-free option later on, in 2015. Meaning they were starting from 100 percent ad supported and working their way down.
Netflix and Disney, on the other hand, are starting at zero and working their way up. They are going to have to convince people to either come on board for the ad-supported service or to switch.
Neither will be an easy task per TV[R]EV’s Alan Wolk.
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Netflix’s upcoming ad-supported plan could cost anywhere from $7 to $9 per month according to Bloomberg. For comparison, the streaming service offers a basic single-screen plan in the U.S. for $9.99 per month, while its most popular plan, which offers full HD streaming on two screens, costs $15.99 per month.
The report noted that Netflix plans to show roughly four minutes of commercials for an hour of programming, which is on par or less than its competitors. It also said that the company might show ads before and during a show, but won’t show anything after an episode ends.
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Between the two platforms, right out of the gate Disney+ seems more prepared to monetize its kids’ content in a COPPA-compliant way than Netflix. But both platforms are facing similar challenges in entering AVOD, and both will likely choose to focus first on monetizing content outside of COPPA’s realm. Sure, that means both will be leaving money on the table from its kids’ content. But that’s less of a sacrifice than ponying up for COPPA fines and dealing with reputational damage among advertisers – which no company can afford.
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The partnership is the first of many lifestyle executions that Roku has planned, initially teased during the company’s NewFronts presentation earlier this year. Idea House serves as the kickoff for further programming, including shows with Martha Stewart and Jessica Alba.
In addition to branding on the home screen to promote Idea House, Roku also added pause ads throughout all of the episodes.
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Back when there were just three big streaming services (Netflix, Hulu and Amazon Prime Video) it was easy enough to manage them along with a cable subscription, especially since most consumers don’t seem to view Amazon as a video service they are paying for, but rather an additional perk of a free two-day delivery service.
But now that we’re up to eight mega-SVOD services, people are feeling overwhelmed. They don’t like having to go to Google to figure out which service that new Kaley Cuoco show about the flight attendant is on. Or remembering which six months free offer is about to expire. Or feeling compelled to only watch original series every time they turn on the TV.
Hence the desire for simplicity, for a return to something that looks and feels a lot like the old cable TV system, only without all the bad parts.
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YouTube wants people to watch more vertical videos on their TVs: The service is getting ready to support YouTube Shorts, its take on TikTok videos, within its smart TV app, Protocol has learned.
YouTube has a massive advantage over TikTok on TVs. YouTube’s app is installed on virtually every smart TV these days, while people have to actively seek out TikTok’s app — something few people may feel inclined to do, due to the assumption that TikTok is a mobile-only service.
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When Netflix launches its cheaper, ad-supported tier, new movies and kids’ programming will remain ad-free oases, per a report Friday from Bloomberg’s Lucas Shaw.
Citing “people familiar with the plans,” Shaw wrote that the Los Gatos, California, firm has told partners that it won’t run ads during original movies and kids’ shows, citing licensing holdups and a desire not to mess with the movie-viewing experience.
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As Netflix and Disney prepare to roll out ad-supported subscription tiers, new research from Fandom indicates a majority of paying customers plan to take a wait-and-see approach before trading down to a cheaper plan.
About 57% of the 1,000 entertainment fans in the study agreed with this statement: “I am not interested in subscribing to any subscription services that have ads.” Just 17% agreed with this one: “I am interested in paying less for an ad-supported tier if there is no free tier.” While 54% of respondents said they only pay for ad-free streaming outlets, just 8% went the other way and said they only get ad-supported ones. About 38% of people reported having a mix of both.
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Unsurprisingly, Netflix is unlikely to let users of its new ad-supported tier download shows and movies for offline viewing, according to code found inside the company’s iPhone app.
Given that the service’s launch is several months away, it’s possible that the company could still change its plans.
This would become a feature you’d need to upgrade, which would be one distinguishable feature between tiers…beyond…ya know ads.
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The percentage of U.S. TV watchers who say they use a free, ad-supported streaming service like Roku Channel, Pluto TV or Freevee ticked up 9 points to 55% in the first five months of 2022, according to a survey of 3,004 U.S. consumers conducted by Hub Entertainment Research.
Meanwhile, the percentage of those who report using a partially ad-supported tier of a subscription streaming service, including Peacock, Hulu or HBO Max, ticked up four points to 42% over that same span.
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Alan Wolk from TVREV chats with Tom Ryan, President & CEO, Streaming at Paramount, as well as the Co-Founder of Pluto TV about Pluto’s humble beginnings to the Paramount Global “super funnel”, and much more.
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