Image: Netflix

Netflix’s new ad-supported option is seemingly just two months away.

Per a new report from The Wall Street Journal about how the streamer is “seeking top dollar for brands to advertise on its service,” Netflix is aiming to launch its ad-supported tier on November 1. The date stems from ad buyers, who have reportedly expressed surprise at the steep prices for ads that Netflix is seeking for its “untested” platform.

Here’s what Netflix is supposedly charging advertisers, which is “substantially higher” than most other streamers, according to The Wall Street Journal:

Executives from Netflix and Microsoft Corp., which is supplying the technology to facilitate the placement of video ads on Netflix, met with some ad buyers last week, some of the buyers said. Netflix is seeking to charge advertisers roughly $65 for reaching 1,000 viewers, a measure known as CPM, or cost per thousand, the buyers said.

Netflix plans to cap the amount that any brand can spend annually at $20 million to ensure that no brand over-advertises on the service and that users don’t get sick of seeing the same ads, but the streamer expects to eventually be able to charge advertisers about $80 for every 1,000 views, as noted in an older report from The Wall Street Journal about how the company is “scrambling to learn the ad business it long disdained.”

“We are still in the early days of deciding how to launch a lower-priced, ad-supported tier,” Netflix said in a statement. “No decisions have been made.”

A report from Bloomberg last week suggested that Netflix’s ad-supported plan would cost $7 to $9 a month, “half as much as its current, most-popular plan, which costs $15.49 monthly with no commercials.”

Source: The Wall Street Journal

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6 comments

  1. Wow, pay a subscription fee to still receive ads. Isn't Hulu like this?

    My Usenet subscription is $8 a month, so Netflix can kiss my @ss. I would definitely much rather pay a monthly fee for all-you-can-download buffets.
  2. Can't see this being a winner. The whole point of paying a subscription is to be free of the gawdawful ads.
    Agreed, though the cable TV model got away with it for decades, so there is certainly a long history of people paying for ads
  3. Agreed, though the cable TV model got away with it for decades, so there is certainly a long history of people paying for ads
    Unfortunately this is correct. I can't stand it, but most people just come to accept it.
  4. Agreed, though the cable TV model got away with it for decades, so there is certainly a long history of people paying for ads
    But that was because there were no other options. As soon as streaming took off, people dropped cable. I cut the cord back in 2009 when there was just Netflix and OTA channels.

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