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Netflix advertising plan launch… Should I change it?

Netflix will launch 'Advertising Basic', an advertising plan next month. Instead of being 4,000 won cheaper than the cheapest plan, it is characterized by an introduction of 4-5 minutes of advertisement in one hour of content.

As Netflix users' options are widened, interest in reasonable use is expected to increase.

Netflix held an online global press conference on the 13th (local time) and announced the introduction of the advertising plan. The advertising plan is first implemented in 12 countries including Korea, the United States, Canada, Australia and Japan. In Korea, it will be introduced at 1 am on the 4th of next month (9 am on the 3rd of the West).

■ What is different from the existing plan, the advertising plan?

Netflix The existing Netflix plans consisted of three plans: ▲ Basic 9,500 won, standard 13,500 won, and premium 17,000 won. Advertising Basic is set at 5,500 won per month, and 15 or 30 seconds of advertising is exposed to the start of the content.

Advertising Basic is not available for content download services, and some movies and series cannot be used. An official of Netflix said, In some contents, the license is limited and cannot be watched.

Advertising Basic is a supported smartphone, tablet, computers, and one person to see the video for up to 720p (HD) image quality. It is higher than the 480p applied by the basic plan. Netflix plans to increase the image quality with HD from next month.

However, some point out that the utility of consumers may not be great. Assuming that we share the money as much as the number that can be connected, the subscription fee to share per capita is ▲ advertising basic 5,500 won ▲ Basic 9,500 won ▲ Standard 6,750 won ▲ Premium 4,250 won.

Viewers who have used basic and standard plans can save subscription fees by changing the plan with advertising basic. However, it is more efficient for premium users to use the existing plan.

■ Netflix, the reason for the introduction of the advertising plan is

Subscribers and sales decrease in the background of Netflix's introduction of the advertising plan. In April, Netflix said in a 1Q earnings announcement that the number of payments decreased by about 200,000 compared to the last quarter. It is the first decline in 11 years since 2011.


In June, Ted Saran Dos Netflix co-chief executive (CEO) mentioned the introduction of the advertising plan for the first time in the Cannes International Advertising Festival. At the time, Saran dos said, In the meantime, we have excluded viewers who want lower prices instead of watching advertisements.

Netflix predicts that the advertising plan will provide more opportunities for advertisers. It also judges that more viewers can be collected. Netflix said, Advertising Basic is an opportunity to approach high-resolution advertisements that are seamlessly to various users, such as young viewers who are gradually staying away from TV.

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