Netflix is in full swing to launch its ad-supported tier as soon as possible. While the streamer announced Microsoft will be its main partner to run the business, the company has also snagged two top Snap executives to help run ads.
Snap’s chief business officer and top ad executive Jeremi Gorman will be Netflix’s president of worldwide advertising and Peter Naylor, Snap’s vice president of ad sales for the Americas, will lead Netflix’s ad sales organization and report to Gorman, according to The Verge (via AdAge).
This announcement comes at a time when Snap has been reported planning to lay off 20% of its staff in the coming days amid to slowdown and Apple competition.
“Jeremi’s deep experience in running ad businesses and Peter’s background in leading ad sales teams together will be key as we expand membership options for consumers through a new ad-supported offering,” said Netflix’s COO Greg Peters in a statement.
Last week, a report by Bloomberg shed some light on the Netflix ad-supported tier. According to the publication, the streamer is considering charging between $7 and $9 for its new ad-supported plan. Currently, Netflix’s cheapest plan offers only 480p content for a single device and costs $9.99 per month.
The new plan is targeted at consumers who find Netflix’s plan prices unaffordable and are willing to watch some advertisements to pay a lower monthly fee. Subscribers to the new ad-supported plan are expected to watch four minutes of advertisements every hour – which is still less than on competing platforms and even regular TV.
It’s also unclear whether Netflix will let subscribers of the ad-supported plan watch video in a resolution higher than 480p. Currently, the plan with HD streaming costs $15.49 per month, while the most expensive plan with 4K streaming costs $19.99 per month.
Do you think Netflix’s ad-supported tier will be worth it? Share your thoughts in the comments section below.
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