Netflix, marking the one-year anniversary of its ad-supported plan, has unveiled a significant enhancement for its affordable tier – the ability to download TV shows and movies. In a blog post by Netflix’s President of Advertising, Amy Reinhard, the streaming giant revealed that downloads will be “available by the end of the week.”
This new feature will be introduced in all 12 regions where Netflix’s ad-supported tier is available, including the US and UK, within that timeframe. Interestingly, Netflix clarified that the downloaded TV shows and movies in this tier won’t include ads; they will offer the same ad-free experience as its higher-priced plans.
Notably, this move will position Netflix as the sole ad-supported streaming service that permits users to download content from its library. Many of Netflix’s competitors, such as Disney Plus and Max, also offer ad-supported tiers, with Disney Plus recently launching its ‘Standard with Ads’ plan in the UK and Europe.
Presently, the ability to download films and TV series is typically reserved for the more expensive, ad-free tiers of these competing services. It remains to be seen if this upgrade prompts other streaming platforms to reevaluate their offerings.
Affordable, ad-supported tiers have become a crucial battleground for leading streaming services. They offer an economical entry point for viewers, especially as ad-free tiers are becoming more expensive. Simultaneously, they increase the ‘average revenue per user’ for streaming providers, who benefit from additional ad-generated revenue.
Netflix celebrated the success of its ad-supported tier by reporting 15 million global monthly active users. The platform is also planning to introduce new types of ads to this expanding audience, including live sponsors for sports events and ads featuring QR codes.
For viewers, there’s a positive side to this development. Netflix intends to introduce a new ad format in early 2024 tailored to binge-watchers. For instance, if you watch three consecutive episodes of a Netflix series, you’ll get the fourth episode without ads. It’s unclear how this will apply to movies and documentaries on Netflix.
Ad-supported tiers often require a degree of compromise from viewers, particularly as some evidence suggests that both Netflix and Disney Plus increased their ad load during the first six months of launching their ad-supported services.
The addition of downloadable content to Netflix’s ‘Standard with adverts’ tier provides another incentive for viewers and may encourage other streaming services to enhance the value of their budget-friendly tiers.
