Netflix is looking to reward binge-watchers who subscribe to its ad-supported plan.
Starting next year, the streaming giant will temporarily remove ads from a TV episode — but only if the user has just watched three episodes one after the other.
The company first mentioned the plan in an investors' letter earlier this month. But today, Netflix President for Advertising Amy Reinhard offered more specifics, including the precise launch date for the new ad format, which borrows a tactic from rival streaming service Hulu.
“Starting in Q1 2024, our advertisers globally will be able to utilize our new binge ad (wt) format that taps into the viewing behavior of watching multiple episodes in a row,” she wrote in a post to advertisers. “After watching three consecutive episodes, members will be presented with a fourth episode ad-free.”
Hence, users on the Netflix ad-supported plan will soon have some incentive to binge watch a TV series. A year ago, the company launched the ad-based tier in an effort to boost its revenue. The plan costs $6.99 per month, making it Netflix’s most affordable streaming tier.
Reinhard says the ad-supported plan has attracted 15 million monthly active users. The same plan is also seeing strong growth, with 30% of new sign-ups for Netflix picking the ad-based tier.
Reinhard’s post goes on to list the various ways Netflix is preparing to introduce new ad formats on the service. This includes the option for an advertiser to run a 60-second commercial, along with presenting QR codes during the ad break. Currently, Netflix says subscribers on the ad-supported plan can expect to see “about 4 minutes of ads per hour” usually before and during select TV shows and movies.
