Everything we know about Netflix’s plan to show adverts

July 12, 2022
Max Gruber 0

Whether we watch horror films, sitcoms or fast-paced dramas, many of us like to relax by bingeing on some of our favourite TV shows and films. Most of us have become accustomed to a seamless viewing experience, with the majority of our favourite streaming services having very few adverts, or none at all.

Despite suffering a period of difficulty, with the company making over 450 job cuts so far in 2022, Netflix is still the UK and US’ biggest streaming service. Their decision to bring out a new, lower priced offering that includes adverts, could have a big effect on how streaming services work going forward. Read on to find out everything we know about Netflix’s plan to show adverts.

When is Netflix getting ads?

Netflix’s Chief Executive, Ted Sarandos, confirmed on 23rd June that the company will be launching a lower priced subscription tier that will include adverts as part of the viewer experience. We don’t know exactly when this service will come into effect, but the new and cheaper alternative is set to be available “sooner rather than later” and is rumoured to be available by the end of 2022.  

Sarandos was clear to emphasise that ad-free Netflix will continue for those who already subscribe to one of their current offerings, and that it would be an additional option for those who want to pay less and don’t mind watching adverts. Although we don’t yet know the price, as the new service is being advertised as a cheaper alternative, it should cost less than the current Netflix basic package which will set you back £10.99. 

Is Netflix adding ads a good thing?

The benefits of this service are that it makes Netflix, and especially Netflix’s original shows, much more accessible to those on lower incomes, and gives those who currently subscribe, the option to save themselves some money if they don’t mind watching adverts.

Although we have been told this won’t affect anyone currently subscribed, we have seen consistent rises in prices of Netflix and other streaming services. There is a worry that with further price rises, the lower paid “ad-tier” will soon become the same price customers are used to paying for their ad-free subscription.

Another fear is that this could just be the beginning, and once one level of subscription gets adverts, Netflix, and other similar services, could slowly begin to show advertisements on their other levels of subscription.

How other streaming services might react

Adverts are already gaining traction among some of the most popular streaming services, with Disney+ recently announcing that adverts were coming to the platform. Now TV also gradually introduced adverts to their offerings, and now offer a “boost” option at an additional fee to those who want an ad-free experience once again.

Other services could follow Netflix, and begin implementing them on their platforms if they see Netflix is successful. But some may go the opposite way, and see their lack of adverts as a unique selling point, something they can use to attract more customers to their service instead. Netflix’s ads could be the start of a new era of streaming service options and competition.

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