Netflix has rolled out its ad-based tier, which includes an ugly 720p resolution cap and missing shows and movies.
By James Brizuela | Posted
We all know how expensive it can be with the myriad of streaming platforms currently on the market. However, to combat the high price of its own standard plan, Netflix has started rolling out its new ad-based level. This new tier will cost $6.99 per month, but there are a ton of issues for users going this route, including capping the resolution at 720p, having to deal with ads, and a ton of movies and games. shows not available due to licensing. problems.
This new ad-based tier for Netflix could be the company’s way of offering a more affordable price to its subscription, which many have complained is way too high. The basic plan is $9.99 per month, with 720p resolution but doesn’t address ads or lack of content like the ad-based tier does. While a 30% discount sounds good, the ad-based tier is pretty terrible in comparison.
Most streaming apps that deal with ads don’t suffer from any sort of breach to their content libraries, and this new ad-based tier Netflix is going to lose between 5% and 10% of the library due to licensing issues. Additionally, the ads will run between 15 and 30 seconds, with four to five minutes of ad space used for every hour of streaming, and are expected to run before and during movies and shows.
Netflix may be trying to battle its own troubles, as in April the company reported its first loss of subscribers, which was 200,000. This led to a ton of issues with the company being sued for lying about profits to investors and the fall in the company’s share price. The company also began canceling a ton of shows and laying off many employees, especially in the animation department.
Netflix is trying to appeal to low-income households with this new ad-based tier and is targeting those who don’t want to pay the higher prices of $9.99 for Basic, $15.49 for Standard, and $19.99 $ for Premium. The idea behind this new tier might convince people ready to cancel their subscription by pairing it with other similarly priced streaming apps. However, not being able to watch around 5% to 10% of the catalog could seriously hurt this new level.
Many streaming apps charge around the same price as this Netflix ad-based tier, and they also have ads, so Netflix may just be following the same formula as everyone else. However, with the recent issues, the once great streaming app might not be able to save itself with this bold move.
Time will tell if Netflix will strike gold with this new ad-based tier, or if the company will sink further into a hole it can’t escape from. While other apps charge around $6.99 for their services, Netflix provides 720p resolution and 90% of its library could be a major reason why this plan fails miserably.