Netflix's tier #4 coming November 1, 2022: Basic With Ads - Updated

To launch AVOD tier Basic With Ads in 12 countries from November 1, 2022:

• 221101 in Canada (6 CAD/mo), Mexico
• 221103 in US (7 $/mo), UK (5 GBP/mo), Australia (7 AUD/mo), Brazil, Japan, S Korea, DE (5 EUR/mo), FR (6 EUR/mo), IT (5.5 EUR/mo)
• 221110 in ES (5.5 EUR/mo)
• To provide outlook at 22Q3 (221018), questions:
• Growth (take-up) prospects
• Customer satisfaction
• ARPU impact
• Cannibalisation. How many will sign-up as new customers vs. current customers downgrading.
• CPM (current and future, assuming stronger targeting)
• Will there also be, in time, a 'Standard With Ads' and a 'Premium With Ads' tier?
• "We're confident that ... we now have a price and plan for every fan."

Specs:

• 1 simultaneous device
• HD/720p
• No downloads
• Excludes 5-10% of titles as result of rights restrictions (to be reduced over time)

Ads:

• Pre & post roll ads, new movies pre-rolls only
• 15-30 sec (20 sec in ES)
• Ad load 4-5 min/hr
• Targeting at first based on Top 10 by region & genre, later possibly on age, gender, viewing behavior, time of day.
• Ads sales based on fixed price not auction.
• Nielsen’s Digital Ad Ratings (DAR) service to start measuring 2023, eventually through Nielsen ONE Ads.
• DoubleVerify and Integral Ad Science (IAS) to verify viewability & traffic validity of ads from 23Q1.

Comparison to current tiers:

• To upgrade Basic plan to HD (720p).
• Current US tiers Basic, Standard, Premium 10, 15.5, 20 $/mo
• Current US DVD-by-Mail: 10, 15, 20 $/mo for 1, 2, 3 discs concurrently