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https://nerdist.com/article/netflix-launching-ad-supported-tier-earnings-interview/
In the age of streaming, Netflix has largely remained steadfast in two things: no ads and full season drops. But the time has come for Netflix to make some serious changes. In a Q1 shareholder letter, the streaming platform acknowledged it lost subscribers for the first time in a decade. It lost 200,000 in Q1 and is on track to lose up to two million by the end of Q2. But in the company’s Q1 2022 Earnings Interview, which is on YouTube, executives announced the subscription shake-up. Netflix is officially adding an ad-supported tier, and it has now arrived. And most shocking of all, it seems like the addition of the ad tier has had a positive impact on Netflix’s subscriptions. In fact, Netflix’s ad-tier has finally made some gains. But consumer take note, it seems like Netflix is moving to widen the gulf in price between its ad-free and ad-supported offerings.
Check out the “Subscription Plan” heading for the full details on what’s happening.
Jump to: Timeline // Features // Cost // Subscription Plans // Password Sharing
Netflix’s Ad-Supported Plan Gets Early Arrival
This is a stark change of pace, considering co-founder and co-CEO Reed Hastings—a long holdout on ad-support plans—indicated the new subscription would arrive in a year or two. During Netflix’s Earnings Interview in April 2022, Hastings admitted the company needed to embrace ads in one way or another in order to make money.
Hastings said:
One way to increase the price spread is advertising on low-end plans and to have lower prices with advertising. Those who have followed Netflix know that I’ve been against the complexity of advertising and a big fan of the simplicity of subscription. But as much as I’m a fan of that, I’m a bigger fan of consumer choice. Allowing consumers who would like to have a lower price and are advertising-tolerant get what they want makes a lot of sense. So, that’s something we’re looking at now, we’re trying to figure out over the next year or two. Think of us as quite open to offering even lower prices with advertising as a consumer choice.
And now, the ad-supported tier, called Netflix Basic, has rolled out, as of November 3, 2022. Netflix’s new ad tier debuted in eight countries. According to The Hollywood Reporter, in the first quarter since the addition of the ad-tier, Netflix saw its subscribers increase by 7.66 million users. And most recently, it was reported by Bloomberg that Netflix’s ad-tier had reached one million subscribers. And these subscribers are not users who have downgraded their accounts, but lapsed or new Netflix users. In addition, according to Gizmodo, Netflix’s ad-tier sign-ups rose from 9% to 19% in January. This means it has more subscribers than Netflix’s Basic option.
It looks like the ad-tier, and Netflix’s other cost-impact solutions, such as exploratory paid account sharing, are here to stay.
What Does Netflix’s Ad-Tier Include?
In an October press conference, Netflix confirmed a small number of shows and movies aren’t available on Basic with Ads. Netflix is working on addressing that. As far as other limitations for Basic subscribers: the maximum video quality will be 720p / HD, and subscribers will not be able to download content.
According to reports from Deadline and Variety, some notable TV shows and movies are not available on Netflix’s ad tier. Among other pieces of content, House of Cards, Arrested Development, Peaky Blinders, New Girl, Gray’s Anatomy, The Crown, Cobra Kai, How to Get Away with Murder, The Magicians, 28 Days, and Skyfall cannot be watched on Netflix Basic with Ads.
What Does Netflix’s Ad-Tier Cost?
The same press conference shared the cost of the ad-supported tier: for the US, it’s $6.99/month. Anyone signing up for Basic with Ads will have to consume four to five ads per hour. They’ll last anywhere from 15-30 seconds. This is not terribly different than a service like Hulu. However, Netflix hinted the price may go up after launch.
Netflix’s Current Subscription Plans
Currently, Netflix’s subscription model offers three different rates: basic, standard, and premium. Here’s how the tiers break down and how they might evolve:
Basic
Currently, the cheapest model, the basic subscription, costs $9.99 per month. Subscribers can only watch content on one device—TV, computer, phone, or tablet—at a time. Netflix calls its video quality “good” with 480p resolution.
However, Netflix subscribers should be aware that in Canada, the “Basic” ad-free plan is no longer available. Netflix has confirmed the option to subscribe to the Basic tier, as mentioned, the cheapest ad-free offering, is no longer available for new subscribers. However, this change will not affect those already subscribed to the Basic Netflix ad-free tier. Existing subscribers will be able to hang on to the lower-priced ad-free tier.
A page from Netflix support shares, “The Basic plan is no longer available for new or rejoining members. If you are currently on the Basic plan, you can remain on this plan until you change plans or cancel your account.” This change means subscribers must either select a more expensive ad-free plan or choose the ad-supported option instead. In effect, Netflix has increased the difference in cost between the ad-supported and ad-free plans. It’s unclear if this change will soon arrive in the United States as well, but it certainly seems indicative.
Standard
The middle price point, standard costs $15.49 per month. As the middle child the video quality is better than in the basic plan, with 1080p resolution. (But it pales in comparison to the premium plan.) Plus, subscribers can watch content on two devices—TV, computer, phone, or tablet—at a time.
Premium
Currently, Netflix’s top subscription package, this tier costs $19.99 per month. And with a 4K and HDR resolution, it features the best video quality the streaming platform offers. And with its heftier price, more people can watch at once. Subscribers can watch content on four devices—TV, computer, phone, or tablet—at a time.
Basic with Ads
The streamer notes that its existing tiers will remain ad-free, and an ad-supported tier will act as a complement to these options. Basic with Ads is $6.99/month. Basic with ads can also now be accessed through an Apple TV.
How Netflix’s Password Sharing Crackdown Factors in
Talk of an ad-supported tier comes as Netflix continues to test a plan to crack down on password sharing in Costa Rica, Peru, and Chile. The streaming service is rolling out ways to cut off sharing passwords between households. In doing so, Netflix is testing ways to offload extra users accessing an account in a home they don’t live in. According to The New York Times, this crackdown strategy will go into effect globally around the same time the new subscription tier launches.
In the Earnings Interview, Peters made it quite clear that this strategy will eventually go global in the next year or so. It certainly would make sense to have an even cheaper model design underway as Netflix looks to finally offload the person using their neighbor’s sister’s ex-boyfriend’s account. And by adding another model–one hopefully in a shiny, feasible price range—the streaming platform could retain users but actually, bring in the revenue. Still, there’s a lot for the platform to work out in the meantime. But as long as Netflix’s ads aren’t overwhelmingly loud, people may just accept them and an ad-supported tier.
Originally published on April 20, 2022.
The post Netflix Canada Widens Gulf Between Ad-Supported and Ad-Free Tier Prices appeared first on Nerdist.
In the age of streaming, Netflix has largely remained steadfast in two things: no ads and full season drops. But the time has come for Netflix to make some serious changes. In a Q1 shareholder letter, the streaming platform acknowledged it lost subscribers for the first time in a decade. It lost 200,000 in Q1 and is on track to lose up to two million by the end of Q2. But in the company’s Q1 2022 Earnings Interview, which is on YouTube, executives announced the subscription shake-up. Netflix is officially adding an ad-supported tier, and it has now arrived. And most shocking of all, it seems like the addition of the ad tier has had a positive impact on Netflix’s subscriptions. In fact, Netflix’s ad-tier has finally made some gains. But consumer take note, it seems like Netflix is moving to widen the gulf in price between its ad-free and ad-supported offerings.
Check out the “Subscription Plan” heading for the full details on what’s happening.
Jump to: Timeline // Features // Cost // Subscription Plans // Password Sharing
Netflix’s Ad-Supported Plan Gets Early Arrival
This is a stark change of pace, considering co-founder and co-CEO Reed Hastings—a long holdout on ad-support plans—indicated the new subscription would arrive in a year or two. During Netflix’s Earnings Interview in April 2022, Hastings admitted the company needed to embrace ads in one way or another in order to make money.
Hastings said:
One way to increase the price spread is advertising on low-end plans and to have lower prices with advertising. Those who have followed Netflix know that I’ve been against the complexity of advertising and a big fan of the simplicity of subscription. But as much as I’m a fan of that, I’m a bigger fan of consumer choice. Allowing consumers who would like to have a lower price and are advertising-tolerant get what they want makes a lot of sense. So, that’s something we’re looking at now, we’re trying to figure out over the next year or two. Think of us as quite open to offering even lower prices with advertising as a consumer choice.
And now, the ad-supported tier, called Netflix Basic, has rolled out, as of November 3, 2022. Netflix’s new ad tier debuted in eight countries. According to The Hollywood Reporter, in the first quarter since the addition of the ad-tier, Netflix saw its subscribers increase by 7.66 million users. And most recently, it was reported by Bloomberg that Netflix’s ad-tier had reached one million subscribers. And these subscribers are not users who have downgraded their accounts, but lapsed or new Netflix users. In addition, according to Gizmodo, Netflix’s ad-tier sign-ups rose from 9% to 19% in January. This means it has more subscribers than Netflix’s Basic option.
It looks like the ad-tier, and Netflix’s other cost-impact solutions, such as exploratory paid account sharing, are here to stay.
What Does Netflix’s Ad-Tier Include?
In an October press conference, Netflix confirmed a small number of shows and movies aren’t available on Basic with Ads. Netflix is working on addressing that. As far as other limitations for Basic subscribers: the maximum video quality will be 720p / HD, and subscribers will not be able to download content.
According to reports from Deadline and Variety, some notable TV shows and movies are not available on Netflix’s ad tier. Among other pieces of content, House of Cards, Arrested Development, Peaky Blinders, New Girl, Gray’s Anatomy, The Crown, Cobra Kai, How to Get Away with Murder, The Magicians, 28 Days, and Skyfall cannot be watched on Netflix Basic with Ads.
What Does Netflix’s Ad-Tier Cost?
The same press conference shared the cost of the ad-supported tier: for the US, it’s $6.99/month. Anyone signing up for Basic with Ads will have to consume four to five ads per hour. They’ll last anywhere from 15-30 seconds. This is not terribly different than a service like Hulu. However, Netflix hinted the price may go up after launch.
Netflix’s Current Subscription Plans
Currently, Netflix’s subscription model offers three different rates: basic, standard, and premium. Here’s how the tiers break down and how they might evolve:
Basic
Currently, the cheapest model, the basic subscription, costs $9.99 per month. Subscribers can only watch content on one device—TV, computer, phone, or tablet—at a time. Netflix calls its video quality “good” with 480p resolution.
However, Netflix subscribers should be aware that in Canada, the “Basic” ad-free plan is no longer available. Netflix has confirmed the option to subscribe to the Basic tier, as mentioned, the cheapest ad-free offering, is no longer available for new subscribers. However, this change will not affect those already subscribed to the Basic Netflix ad-free tier. Existing subscribers will be able to hang on to the lower-priced ad-free tier.
A page from Netflix support shares, “The Basic plan is no longer available for new or rejoining members. If you are currently on the Basic plan, you can remain on this plan until you change plans or cancel your account.” This change means subscribers must either select a more expensive ad-free plan or choose the ad-supported option instead. In effect, Netflix has increased the difference in cost between the ad-supported and ad-free plans. It’s unclear if this change will soon arrive in the United States as well, but it certainly seems indicative.
Standard
The middle price point, standard costs $15.49 per month. As the middle child the video quality is better than in the basic plan, with 1080p resolution. (But it pales in comparison to the premium plan.) Plus, subscribers can watch content on two devices—TV, computer, phone, or tablet—at a time.
Premium
Currently, Netflix’s top subscription package, this tier costs $19.99 per month. And with a 4K and HDR resolution, it features the best video quality the streaming platform offers. And with its heftier price, more people can watch at once. Subscribers can watch content on four devices—TV, computer, phone, or tablet—at a time.
Basic with Ads
The streamer notes that its existing tiers will remain ad-free, and an ad-supported tier will act as a complement to these options. Basic with Ads is $6.99/month. Basic with ads can also now be accessed through an Apple TV.
How Netflix’s Password Sharing Crackdown Factors in
Talk of an ad-supported tier comes as Netflix continues to test a plan to crack down on password sharing in Costa Rica, Peru, and Chile. The streaming service is rolling out ways to cut off sharing passwords between households. In doing so, Netflix is testing ways to offload extra users accessing an account in a home they don’t live in. According to The New York Times, this crackdown strategy will go into effect globally around the same time the new subscription tier launches.
In the Earnings Interview, Peters made it quite clear that this strategy will eventually go global in the next year or so. It certainly would make sense to have an even cheaper model design underway as Netflix looks to finally offload the person using their neighbor’s sister’s ex-boyfriend’s account. And by adding another model–one hopefully in a shiny, feasible price range—the streaming platform could retain users but actually, bring in the revenue. Still, there’s a lot for the platform to work out in the meantime. But as long as Netflix’s ads aren’t overwhelmingly loud, people may just accept them and an ad-supported tier.
Originally published on April 20, 2022.
The post Netflix Canada Widens Gulf Between Ad-Supported and Ad-Free Tier Prices appeared first on Nerdist.
Paramount+ has canceled a number of shows, including the animated series Star Trek: Prodigy. The show, which brought Kate Mulgrew back as Captain Kathryn Janeway, is the only Star Trek show in the current slate to target a younger audience. Besides canceling the Star Trek series, Paramount+ has also canceled The Game, Grease: Rise of the Pink Ladies, and Queen of the Universe. Furthermore, the company will soon be removing the four series from the streaming service entirely.
The news comes right before Paramount+ and Showtime launch as a single service. A spokesperson told The Hollywood Reporter the following:
As we prepare to combine Paramount+ and Showtime later this month in the U.S., we are refining our content offering to deliver the best streaming experience for subscribers. This is consistent with our content strategy since launch and across our business, which ensures we make smart, efficient choices, informed by audience data and insights. We are removing select programming as we look to optimize Showtime’s robust slate of premium originals.
Star Trek: Prodigy was renewed for a second season in November 2021. The good news is the series will still complete post-production for that season and maybe find life elsewhere. CBS Studios will shop both seasons around. Still, it could be a while before we see Prodigy continue. This trend of streamers dropping content as if it never existed is troubling, but unfortunately, as long as it continues to offer a cost savings, we don’t anticipate it changing.
Dan Hageman and Kevin Hageman, who write on the show, shared the above hopeful message on Twitter. They make a great point about how Prodigy serves younger fans. It introduces a whole new generation to the wonderful Star Trek universe. We will keep our fingers crossed!
The post Paramount+ Cancels STAR TREK: PRODIGY and Will Remove the Series from the Streaming Service appeared first on Nerdist.
The Thompson twins are not only making their hoop dreams come true, but making NBA Draft History as they accomplish it.
Amen and Ausar Thompson, 6’7 brothers from Fort Lauderdale, Florida were the No. 4 and No. 5 draft picks for the 2023 NBA Draft, respectively.
Amen, a point guard, was picked up by the Houston Rockets, while his brother will be starting his NBA career as a power forward with the Detroit Pistons.
The Athletic confirmed that while the two are not the first set of twins to be drafted together, they are the highest ranking and within the top ten, beating Marcus and Markieff Morris as they were the No. 13 and No.14 picks in the 2011 draft.
Proud mom of the Thompson Twins!
#NBADraft presented by State Farm NEXT on ABC & ESPN pic.twitter.com/CVnwv14bzu
— NBA (@NBA) June 22, 2023
The twins are highly-anticipated to be major game-changers in their upcoming roles with the franchises.
Their path to professional basketball is a relatively recent one, as the brothers chose to forego the collegiate route usually taken by aspiring NBA players, which is attending a top Division 1 school and playing for their programs.
This 2 min recap of the Thompson Twins’ journey to the NBA is EVERYTHING pic.twitter.com/jOygFmOWGS
— Robert Griffin III (@RGIII) June 24, 2023
Instead, they chose to skip school and play for the newly established Overtime Elite, a professional league based in Atlanta for 16 to 20-year -olds with the hopes of performing well enough to advance to the NBA.
The Thompsons exceeded expectations during their two-year contract with Overtime Elite, banned together in their final season with the City Reapers team to win the championship. While the brothers were forces to be reckoned with, Ausar was named regular season MVP and Finals MVP for both his seasons at the league. To add to his accolades, he also earned each MVP award offered at Overtime Elite during his reign.
The Thompson twins have never been separated prior to their NBA induction, but will now have to face off against each other on behalf of their different cities in a battle for the national title in the ’23-’24 season.