In a significant upgrade to its budget-friendly tier, Netflix Inc. NFLX announced that it will soon allow users on its ad-supported plan to download movies and shows.
What Happened: Netflix’s President of Advertising, Amy Reinhard, revealed in a blog post that movies and shows will be downloadable across all 12 regions where the ad-supported tier is offered by the end of the week.
See Also: YouTube Premium Prices Skyrocket In More Countries Around The World, Almost Doubling For Some
Interestingly, the downloaded content will be ad-free, mimicking the experience of Netflix’s higher-priced tiers. This move positions Netflix as the sole ad-supported streaming service that permits users to download its content, a feature usually reserved for pricier ad-free tiers.
Netflix stated its ad-supported package has garnered 15 million active users globally each month. The company also outlined plans to introduce new ad formats, including live sponsors for sports events and ads with QR codes.
A new ad format targeting binge-watchers, offering an ad-free episode after three consecutive episodes, is also scheduled for release in early 2024.
Why It Matters: The introduction of the download feature to Netflix’s ad-supported plan is a strategic move in the competitive streaming market.
This is particularly notable given a recent price hike in Netflix’s subscription costs in the US, UK, and France last month. The price increase, however, did not affect the entry-level, ad-supported tier, which remains at $6.99 per month.
With this feature, Netflix aims to offer added value to its budget-friendly plan subscribers, possibly attracting more users to this tier. The fact that the downloaded content will be ad-free enhances the user experience, further distinguishing Netflix in a market crowded with ad-supported streaming services.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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