It’s been a year since Netflix launched its “Basic With Ads” tier, joining an increasingly cluttered landscape of ad-supported streaming platforms. Netflix leveraged a year of solid connected TV (CTV) ad spend growth, cost-conscious consumers, and Hollywood strikes that emphasized the value of a deep existing catalog to grow its ad-supported plan to 15 million global monthly active users, according to a company post. Here’s a look at what’s new, what’s working, and what needs more attention at Netflix.
What’s new?
- Netflix expanded beyond 15- and 30-second ads to 10-, 20-, and 60-second spots.
- The platform boasts “elevated” measurement capabilities, partnering with Integral Ad Science, DoubleVerify, and Nielsen One, according to Netflix’s president of advertising Amy Reinhard.
- Netflix is introducing a binge format, which rewards viewers who watch three consecutive episodes with an ad-free fourth one.
- QR codes are coming to Netflix advertising creative, which will help drive shopability in ads.
- Brands can now be featured as a title sponsor on content.
- Live sports are coming to Netflix in the form of The Netflix Cup, a combined Formula 1 and golf tournament.
- Netflix plans on opening new brick-and-mortar locations that combine retail, dining, and live experiences in 2025.
Basic With Ads is the new Basic as the platform slashed its Basic ad-free plan in July 2023 for US and UK viewers.
- Following that move, the share of Basic With Ads sign-ups increased on Netflix in August and September, according to Antenna.
- A boost in Netflix ad-supported tier sign-ups also followed its password-sharing crackdown in May.