'Netflix and Ads' could become the latest buzzword to overtake 'Netflix and Chill' when the streaming platform launches its ad-supported tier to its range of streaming packages.
While it has been in the works for several months, the streaming platform announced last week that it would begin the international roll-out of its ad-supported membership on November 3.
The new "Basic with Ads" tier will begin with the roll-out in the US, Australia, France, Germany, Italy, Japan, South Korea and the UK, with the package launching in Spain a week later – an indication that the tier will eventually make its way to South African shores.
When the package is launched locally, the move could spell good news for first-time users of the platform by allowing greater access to streaming for those who could not afford the higher-priced subscriptions.
In the US, the ad-support membership is expected to be priced at $7 (about R120), a $3 saving off the cheapest Netflix package. In contrast, the most affordable Netflix package offered to South Africans costs R49, offering a lower quality of streaming at 480p for mobile and tablet.
Meanwhile, the HD 1080p streaming package, limited to dual-device streaming, is priced at R159.
Netflix has suggested that it would not be increasing its prices in the wake of the addition of its new ad tier membership.
Meanwhile, Wired reported that the US's $10-a-month Basic plan (the equivalent of the local R99 package) will get to stream 720p HD quality video, which was only reserved for the R159 package and above.
Commenting on the new package in an interview with Wired, Netflix chief operating officer Greg Peters said the new tier would not allow subscribers to download anything to watch off-line.
"While the ad-supported tier does not necessarily paywall any parts of the catalogue, a ‘limited’ number of titles won't be available to stream because of existing licensing restrictions," Peters said.
The new tier offering from Netflix comes amid pressure from tough economic conditions and new rival streaming services.
Earlier this year, IOL reported that it would clamp down on users sharing their Netflix password with friends and family in other households. It shortly launched a higher streaming package to its global market.
Netflix stated at the time that account sharing between households impacted the company's ability to invest in new TV shows and movies.
IOL Tech