Netflix’s ad-supported plan likely to have another disadvantage: No video downloads

Getty Images | Bloomberg

The presence of ads apparently will not be the one main distinction between Netflix’s ad-supported and ad-free plans. Text reportedly discovered within the code of Netflix’s iPhone app suggests the ad-supported plan will not let customers obtain films and exhibits for offline viewing.

The textual content says, “Downloads available on all plans except Netflix with ads,” in accordance to a Bloomberg report yesterday. The textual content was found by iOS developer Steve Moser, who wrote about it on his weblog. Unsurprisingly, the Netflix app “code also suggests that users won’t be able to skip ads—a common move in the streaming world—and playback controls won’t be available during ad breaks,” Bloomberg wrote.

Netflix has been providing video downloads in its apps since late 2016. A Netflix spokesperson instructed Ars, “We are still in the early days of deciding how to launch a lower-priced, ad-supported tier and no decisions have been made. So this is all just speculation at this point.”

Moser’s weblog submit stated he additionally discovered Netflix app textual content from a setup course of for brand spanking new subscribers who choose the ad-supported plan. The textual content refers to the usage of customized advertisements. “Now, let’s set up your ad experience. We just need a few details to make sure you get the most relevant ads on Netflix. It’ll be really quick, we promise!” the textual content says.

Hulu equally makes downloads accessible solely to customers on its no-ads plans. HBO Max additionally requires an ad-free plan for downloads.

Ad tier deliberate for early 2023

After years of resisting advertisements, Netflix Co-CEO Reed Hastings introduced in April that the streaming service will provide an ad-supported tier. Netflix says it plans to launch the ad-supported tier in early 2023.

Netflix costs within the US vary from $9.99 for “Basic” to $19.99 a month for “Premium.” Netflix says the “lower priced ad-supported subscription plan” might be supplied “in addition to our existing ads-free basic, standard, and premium plans.” Advertisement

Netflix hasn’t stated what the ad-supported plan will value or whether or not it’ll have different limits like those in Netflix’s least expensive present plan. The Basic plan, which is presently the most cost effective possibility, doesn’t present high-definition video and has two different notable limits: Basic customers cannot watch on a couple of display screen at a time, and so they can solely obtain movies on one telephone or pill.

The $15.49-per-month Standard plan permits HD video and lets subscribers watch on two screens concurrently and obtain movies on two units. The $19.99 Premium plan permits 4K viewing, the flexibility to watch on 4 screens concurrently, and downloads on up to 4 units.

Netflix dropping subscribers

Netflix can also be cracking down on account-sharing by testing an “extra member” charge in some nations and an “extra home” charge in others. A Netflix letter to shareholders stated the corporate goals to full a broader rollout of sharing charges subsequent 12 months.

Netflix final month reported a lack of 970,000 paid streaming subscribers in Q2 earnings after having misplaced 200,000 clients within the first quarter of 2022. Worldwide paid memberships decreased from 221.64 million to 220.67 million in Q2, and income development has slowed dramatically.

Netflix says the ad-supported tier is essential to enhancing income and income. “While it will take some time to grow our member base for the ad tier and the associated ad revenues, over the long run, we think advertising can enable substantial incremental membership (through lower prices) and profit growth (through ad revenues),” Netflix’s quarterly letter to shareholders stated.

Netflix employed Microsoft to present promoting expertise, saying that “Microsoft offered the flexibility to innovate over time on both the technology and sales side, as well as strong privacy protections for our members.”

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