Hi, this is Wayne again with a topic “Ads Are Coming to Netflix…”.
Okay, I want to talk about Netflix launching oh, the ad supported tier, a cheaper basic you basic son, uh, cheaper basic subscription with advertising in November. I wonder what they’re gon na do about ad blocks everything you need to know. Courtesy of the Daily Record so you’ll have to forgive me. The original source is in uh British pounds.
That’S another currency, that’s much weaker than yours! My American friends. I think it’s 599 U.S and 6.99 Canadian or something and 499 pounds. Wait that doesn’t make any sense.
Isn’T the pound like super weak? Now I don’t know who knows the point is that it will offer all the same features of a standard subscription which is going to stay at 11 pounds sterling uh. But there will be a few differences, which is to say that it will not offer all the same features for one thing: it will not offer an ad free viewing experience, Greg, Peters, Chief Operating and product officer of Netflix said basic with adverts. That’S British for advertisements is everything people love about Netflix at a lower price, with a few adverts in between? What’S a few foreign I mean, if you ask Google, maybe 10 okay yeah, that was a that was an experiment that was, I generally.
I generally see a few as three, but I I my understanding is that it’s like three or more right, I’d, say I’d say if they have I’d, say it’ll probably be a few that that would be. That would be my guess. They used the word a few.
So it’ll probably be like free pound is still stronger than USD okay. Uh basic with adverts, he went on to say, also represents an exciting opportunity for advertisers. Yeah almost nothing good starts with, represents an exciting opportunity for advertising. I literally yeah. I don’t think I’ve ever been able to attach that to a positive statement, the chance to reach a diverse audience, including younger viewers, who increasingly don’t watch linear TV in a premium environment with seamless, high resolution adverts or have any money to buy anything well uh. Subscribers of the new plan will also be able to enjoy a wide variety of great TV series and films on a range of TV and mobile devices, but this is another difference between normal standard Netflix and new Netflix basic is that actually some programs will not be Available due to licensing restrictions, if I had to guess, I would say that some of the agreements that they’ve signed over the years, probably specifically license for a non-ad supported platform and now that they are not one for these particular viewers.
That may no longer be a valid licensing agreement. It’S on a full playing chat said it’s 45 minutes per one hour for one hour between 15 to 30 30 seconds in length, so better than this hour has 22 minutes. Is it going to hold on a second? Is it gon na pop up in like the middle of a movie? Does anyone know, I doubt it because it’s not it’s not this isn’t launched yet is it? No? I don’t think no.
No, it’s not. I believe you can get it starting in November, okay November 3rd, but they really interrupt a movie. I mean realistically YouTube interrupts the middle of a long video, but with YouTube It’s I don’t, I feel like I have a different expectation, a movie.
That’S a really! That’S a really like different. When I sit down to watch a movie, I got my pop okay, I’m kind of a freak about it like I will sit there, while my if, if I’m having trouble with like you know my Plex server or like the projector, is not connected to the thing, Because the kids were fooling around with it or something I will sit there while my ice cream melts, while my popcorn gets cold and I will not take a bite of either of them until the movie has started like my Movie. Snacks are for movie time, and that’s it I I already all this is actually a thing. I already knew all of that and he feels just that strongly about it and always will so any new part of that was surprising.
There’S like for me, there’s something a little sacred about the uh, which is cool the movie watching experience, and now I I don’t really watch the Marvel films, but I know this clip. That’S gon na be like watching with my wife Iron Man, bathroom sitting there with his glove thing with the gems, and I am Iron this ad brought to you yeah exactly right, wait, I guess that’ll be a Disney plus only thing but well whatever you got ta. Imagine that they’re gon na use like machine learning, to figure out the optimal Cliffhangers to put ads on, so that your retention won’t be affected by it. Oh yeah, I was interpreting that the other way, but you’re totally right. No, no! It’S gon na be your favorite version.
Yeah yeah, that’s 100 gon na be the evil version. Yeah uh people are asking what about ad blocker? I suspect it’s going to be pretty difficult, because Netflix is such a an in-app experience on so many devices like there. There may be ways to block it, but like okay, even something like pie, hole to my knowledge doesn’t actually manage to block YouTube ads on something like a smart TV.
I think Netflix also has people always I I don’t know why people don’t really think about this, but every time I bring it up, people freak out at me and then figure it out later on, but they don’t actually have that much content. What I mean is compared to like a YouTube or something right, so they could bake in the ads if they really wanted. That’S actually something we talked about as a DRM strategy for float plane back in the early days, when we weren’t really sure how to do it was if we were if we were going to have some kind of sponsor message yeah. If we were going to have some kind of AD supported version of it, how were we going to make sure that we were actually serving these bloody ads, um and and yeah actually re-encoding the video with it in the video and then you’d have to have some Kind of modification to the player, so that skipping is not allowed during that section or once it’s activated or something like that.
Ultimately, we decided against an ad supported tier just because it’s like impossible to make money on it and you’d need business people to start selling. The ads and like or you’re joining some program and then you’re gon na get worse rates and you’ve got a horrible horrible horrible ads. And I I don’t like cats anyways yeah, that’s that’s fair, so we’re float playing premium only uh, but anyway, I think the main discussion question for me and okay. I want you to answer this honestly. Will you downgrade? No because I don’t have it anyways, so I would have to upgrade too, but you’ve had Netflix so put yourself back in that headspace.
Will you downgrade knowing that the person it’s gon na affect is Emma? You want to know something funny. I don’t have it right now, right yeah. I told her yesterday that this was a thing because I was like hey.
If you wanted to get it yourself, it’s cheaper .