- Netflix improves its affordable subscription with ads
- The subscription will support 1080p resolution as well as two simultaneous streams
- The proposed catalog is also increasingly similar to that of offers without advertising
In 2022, Netflix finally took the leap by launching its new affordable, but partially ad-supported offer. The company, which was once opposed to the idea, changed its mind when its growth was threatened.
Today, contrary to what was suggested by certain rumors, the company is satisfied with the performance of this offer. Proof of this is that when announcing its quarterly results, Netflix mentioned the arrival of new advantages for users of this affordable subscription.
In essence, the Essential subscription with advertising, which costs 5.99 euros per month in France, will be a little more interesting. Concretely, here are the 3 new advantages of this low cost subscription, which Netflix has just announced.
1 – Movies and series in 1080p
Today, if you watch Netflix movies and series with an Essential subscription with ads, you only have access to 720p resolution. But as announced by Netflix, this will change soon and you will be able to enjoy the content in higher resolution at 1080p.
2 – Two streams at the same time
The other novelty, which Netflix will offer on its low cost subscription, is the possibility of watching two streams simultaneously with the same account. “We believe these enhancements will make our offering even more appealing to a broader set of consumers and further enhance advertising engagement for existing and new subscribers”says the SVOD in its letter to shareholders.
These two new features for the Essential offer with advertising arrive this April in the 12 countries where the subscription is offered (including France). Initially, they will be offered in Canada and Spain.
3 – A better catalog
One of the disadvantages of the subscription with advertising from Netflix is that it has a less rich catalog of films and series than that of subscriptions without advertising. Indeed, if Netflix can do what it wants with its original creations, it must renegotiate with the rights holders of third-party content. The absence of several non-Netflix films and series on the low-cost subscription was therefore highly criticized when it was launched.
But in this regard, the new Netflix offer also becomes more interesting. Indeed, little by little, the SVOD was able to fill this void. “Additionally, through our latest set of licensing agreements, our ad-supported plan now has around 95% content parity on average globally (per view) with our ad-free plans, including all the latest Netflix movies and shows”, indicates the company to its shareholders.
Netflix discovers that advertising pays
If Netflix has decided to improve this affordable offer with advertising, it is because it does not only increase the number of subscribers. The company is also satisfied with the performance of the new subscription from an economic point of view. In the United States, subscription with advertising already has a higher average revenue per member than the standard offer.
In essence, everyone wins. Subscribers can use a cheap offer that is increasingly advantageous, and Netflix can hope to increase its revenue per member. Moreover, the company will also strengthen its offer for advertisers. “(…) we’re launching a programmatic private marketplace to provide more buying options for Netflix ad inventory using Microsoft’s sales platform”says its letter to shareholders.
Also, although Netflix subscriber growth has been below expectations, its outlook is good. Indeed, in addition to improving its low cost offer, the SVOD is also preparing to put an end to the sharing of passwords.
