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Netflix Partnering With Microsoft for Ad-Supported Streaming Tier

Regardless of how you feel about Netflix and ad supported streaming, this move makes total sense for Netflix.

In strategic terms, Netflix is making a shift from selling exclusive supply (content) to selling exclusive demand (user data to advertisers), because the latter is far more scalable and defensible than the former.

Whether it works out remains to be seen, but it's notable that Spotify is moving in a similar direction with its exclusive podcasts and the ads it's selling on them.
 
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MacRumors said:


Netflix today announced that it plans to partner up with Microsoft for its planned ad-supported streaming tier, with Microsoft set to handle ad sales. Netflix says that Microsoft will be able to support all of its advertising needs for the new, more affordable streaming option.

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Netflix co-CEO Ted Sarandos confirmed in June that Netflix is planning to implement a cheaper ad-supported tier to draw in customers who do not want to pay the $9.99 per month starting price for an ad-free plan. At the time, Sarandos said that Netflix was in talks with ad-sales partners.

The Basic Netflix plan is priced at $9.99 and it offers 480p streaming, while the Standard plan is priced at $15.49 for 1080p resolution. Netflix's most expensive Premium plan, priced at $19.99 per month, is the sole tier that offers 4K HDR streaming. Netflix continues to be the only streaming service that charges extra for improved streaming quality, and the ad-supported tier will likely offer streaming quality similar to the Basic plan.

Though Netflix said in the past that it would not offer a more affordable tier with ads, the company's plans changed following its disappointing first quarter. Netflix lost subscribers for the first time in 10 years, with revenue growth slowing considerably. Netflix largely blamed the downturn on "a large number of households sharing accounts" and "competition."

An ad-supported tier could help Netflix tap customers that it is not able to reach at the current time, and Sarandos said that he believes Netflix will return to growth with the ad-based tier and the plan to more effectively monetize multi-household sharing through new restrictions that are being tested.

Netflix today said that it's "very early days" and there's "much to work through," but that its long term goal is to offer "more choice for consumers and a premium, better-than-linear TV brand experience for advertisers." Netflix is rumored to be aiming to launch its ad-supported tier before the end of 2022, perhaps in the last three months of the year.

Article Link: Netflix Partnering With Microsoft for Ad-Supported Streaming Tier
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This is pure greed, don't tell me Netflix doesn't earn a lot of money, maybe they should take a look on its content instead and take quality over quantity!

Microsoft innovative... well on marketing maybe, but this is not a good solution for the customers as i see it, Netflix should could stand alone as a business.
 
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Nope. Cancelled my Netflix ages ago. Too expensive. Forced to pay the most expensive to get 4k. 1080p looks toss on my 65" oled by comparison. Can't share?? I WAS PAYING FOR IT. Totally my choice if I want to share some of my 4 with my family. Greedy company. Cancelled and wouldn't go back now out of principle no matter what they dropped the price to.
 
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I hear about people unsubscribing from Netflix for two major reasons:

- It's too expensive
- There's nothing to watch

I'm not sure making it cheaper by adding ads will ever bring those people back.

But will they get new subscribers with this new cheaper ad-supported plan? Possibly.

I guess we'll find out.
 
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sw1tcher said:
You do realize that millions of people are subscribed to Hulu's $6.99/mo plan that's ad supported, right?

The same goes for Paramount+ with ads for $4.99/mo, HBO Max with ads for $9.99/mo, and Discovery+ with ads for $4.99/mo

You should familiarize yourself with what the market for discounted ad-supported streaming services is like before speaking.

Ad-supported streaming services are seeing faster growth than subscription (ad-free) services.

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I'm pretty sure I can still laugh about those (and eventually netflix) offers.
 
Is their drive to get more subscribers or to make more money? (probably both)

If they make the advert tier free how many of the lowest paid tier ($9.99?) will move to the free tier - this could have a major impact on future revenue and make their situation ever worse
 
NWMark said:
Is their drive to get more subscribers or to make more money? (probably both)

If they make the advert tier free how many of the lowest paid tier ($9.99?) will move to the free tier - this could have a major impact on future revenue and make their situation ever worse
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It won’t be free?
 
Michael Scrip said:
I hear about people unsubscribing from Netflix for two major reasons:

- It's too expensive
- There's nothing to watch

I'm not sure making it cheaper by adding ads will ever bring those people back.

But will they get new subscribers with this new cheaper ad-supported plan? Possibly.

I guess we'll find out.
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There’s another risk - someone already paying for a higher tier that decides to switch to the ad-supported tier, possibly resulting in a net loss on revenue for Netflix. Enough people doing this would nullify whatever subscriber gains Netflix gets from such a move.
 
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First year canceling Netflix and they can get bent if it’s up to me. I went with prime and it’s crazy what less money can get you. Quiet frankly this people robbed me- 21$ a month for the image quality and we barely had 2 tv open on a regular. Pure thieves. Underserving of the extra 7$ I was paying . Shame on them and they can put this new subscription…
 
Adverts are just awful. I refuse to download anything that does adverts. Even this site is heavily crafty with trying to track you and steal your data. Pity I know what I'm doing and stop it all.
 
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sw1tcher said:
So you've never had cable television where you pay $x per month and still see commercials?
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I was an early adopter of streaming services, and ditched cable immediately. Previously I used DVRs and VHS to record things, and just skipped the commercials. I also have a huge DVD library of series that I liked to watch (now irrelevant due to streaming). In cases where I couldn’t avoid TV ads, I used a mute button.

I aggressively avoid advertising, from ad-blockers, to using apps that clear them (Frieindly+, Tweetbot, etc) to sheer bloody-mindedness. You’d be surprised at how annoying they are once you’ve not seen any for a couple of decades
 
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They want the line to keep going up and find a scapegoat to blame.

Then they shoot themselves in the foot trying to keep that line going up. I wonder if Pihole and uBlock can block their ads.
 
I don't know why some are getting so upset about Netflix offering an OPTIONAL ad-supported plan. They're not taking away ad-free options. No one is being forced to go with the ad version. If some subscribers want Netflix to "pay" them (via a plan discount) to be able to run ads, the CHOICE is there. Those that don't, the CHOICE is there.

Various other streaming services offer ad-supported options including HBO Max, Hulu, Paramount+, Peacock, etc. Disney+ will also be offering an ad-supported option soon, and it expects most customers to pick that plan (similar to their Hulu customers). Most Paramount+ and Peacock subscribers choose ad-supported plans too. Ad-supported plans, when available, tend to be popular and I think it makes sense for Netflix to provide that OPTION.
 
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Well maybe it is because I am losing my vision and have only an HD TV, but the resolution thing doesn't bother me for the most part. The number and spacing of pixels on most modern screens are far outstripping the spatial resolution of the visual system anyway (when people talk about resolution of screens (and camera sensors) I start remembering the bit from This is Spinal Tap where one of the characters talks about his amp going up to 11 on the dial).

In any case, I subscribe to Netflix precisely to avoid commercials. I am willing to pay a little more per month to avoid ads. However, if I pay a higher subscription I do not want to see so much as one ad and I don't want my data sold on. If Netflix doubles-dips, both using ads and charging higher subscription fees, I'll simply cancel my subscription and consider Apple's alternative.
 
The whole reason I dumped TV years ago and went to Netflix was to avoid ads. This is a hard NO from me.
 
VulchR said:
Well maybe it is because I am losing my vision and have only an HD TV, but the resolution thing doesn't bother me for the most part. The number and spacing of pixels on most modern screens are far outstripping the spatial resolution of the visual system anyway (when people talk about resolution of screens (and camera sensors) I start remembering the bit from This is Spinal Tap where one of the characters talks about his amp going up to 11 on the dial).

In any case, I subscribe to Netflix precisely to avoid commercials. I am willing to pay a little more per month to avoid ads. However, if I pay a higher subscription I do not want to see so much as one ad and I don't want my data sold on. If Netflix doubles-dips, both using ads and charging higher subscription fees, I'll simply cancel my subscription and consider Apple's alternative.
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The 4K resolution is less important than the HDR. You don’t need 20/20 vision to see the difference between HDR and SDR.
 
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All other quality streaming services have to do is offer higher quality and stay at a lower price than Netflix and eventually it will fail and be bought out. Hopefully by Apple.
 
WWPD said:
"The Basic Netflix plan is priced at $9.99 and it offers 480p streaming"

I can't give my money to this company, I just can't. Shameful. 1080p should be bare minimum.
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Why should that matter? If 1080p is someone's bare minimum, they should judge Netflix based on that plan offering and price. The basic plan becomes irrelevant. If someone was shopping for a car and their desired bare minimum was BMW 7 Series level, it shouldn't matter that BMW also offers 2, 3, 4, 5, etc. series models.

Netflix even refers to their HD plan as the "standard" plan. The basic plan is kind of like a discounted plan for budget shoppers. Netflix offering a 480p plan is similar to Apple offering an "older tech" phone like the SE.
 
Zapski said:
I was an early adopter of streaming services, and ditched cable immediately. Previously I used DVRs and VHS to record things, and just skipped the commercials.
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In other words, you did (at one point) pay to be shown advertising. That's contrary to your previous statement where you said "I will never pay to be shown advertising. What a stupid idea."

Skipping through them doesn't change the fact that they're there.
 
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