Netflix to Reward Binge-Watchers with Ad-Free Episodes for Subscribers on Ad-Supported Plan
Netflix is set to reward devoted binge-watchers who opt for its ad-supported subscription plan. Commencing in the next year, the popular streaming platform will temporarily eliminate advertisements from a television episode, but only if the viewer has consecutively watched three episodes in a row.
This concept was initially unveiled in an investor communication earlier this month, and today, Netflix‘s President for Advertising, Amy Reinhard, provided additional details, including the specific rollout date for this innovative advertising format, which draws inspiration from Hulu, a competitor in the streaming service market.
“In Q1 2024, advertisers worldwide will gain access to our innovative ‘binge ad’ format that capitalizes on the viewing behavior of watching multiple episodes sequentially,” Reinhard stated in a communication to advertisers. “Following the viewing of three consecutive episodes, members will be presented with a fourth episode devoid of advertisements.”
Consequently, subscribers to Netflix’s ad-supported plan will soon find an enticing reason to indulge in binge-watching TV series. A year ago, the company introduced this ad-based subscription tier as part of its strategy to boost revenue, priced at $6.99 per month, positioning it as Netflix’s most affordable streaming option.
Reinhard noted that the ad-supported plan has already attracted 15 million monthly active users and is also experiencing substantial growth, with 30% of new Netflix sign-ups opting for the ad-based subscription.
In her communication, Reinhard also outlined Netflix’s plans to introduce additional advertising formats on the platform. This includes allowing advertisers to run 60-second commercials and present QR codes during ad breaks. Currently, subscribers on the ad-supported plan can anticipate seeing around “approximately 4 minutes of ads per hour,” typically before and during select TV shows and movies.
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