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Index – Tech-Science – Netflix will be cheaper, but ads will come

Index - Tech-Science - Netflix will be cheaper, but ads will come

In Hungary, the subscription fee is currently between 2,500 HUF and 4,500 HUF, it depends on the number of devices and the preferred quality we choose.

The goal of the streaming service is to attract subscribers who want to watch commercials for a lower monthly fee. It is preparing to introduce advertising for the first time as Netflix tries to find a balance between reaching more cost-conscious consumers and offering an enjoyable experience.

It takes four minutes of movie experience every hour

Netflix plans to sell about four minutes of ads per hour for the ad-supported service, far less than most of its competitors. The company will air commercials before and during some shows, but not after.

Netflix plans to roll out the new, cheaper option in at least six countries in the last three months of the year. According to the company, the full introduction will have to wait until the beginning of next year.

Details of the service are already leaking out while Netflix prepares its plans and meets with its business partners. A lot can change as a company builds business.

It follows the example of TVs, but sells shorter time

Netflix has long marketed itself as a customer-friendly alternative to cable TV. People will be able to watch TV shows and movies on demand without commercial ads. Users can cancel (or subscribe) to their service at any time, without much hassle, and have access to a variety of programs.

However, subscriber losses in the first half of the year have forced management to back off the ads. They believe that the cheaper tier will attract new cost-conscious customers and provide a cheaper alternative for those willing to cancel.

The new tier could bring Netflix $8.5 billion a year worldwide by 2027, including subscription fees and ad sales, according to media consultancy Ampere Analytics. Many cable TVs offer 10-20 minutes of commercials per hour, but most streaming services offer less than cable.

Most of the work will be done by Microsoft, which has won the right to be Netflix’s exclusive advertising technology and sales partner.

(Cover Image: Rafael Henrique/SOPA Images/LightRocket/Getty Images)

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