It is reported that the ``low price plan with advertisement'' planned by Netflix will play 4 minutes of advertisement per hour at around 1000 yen per month

Netflix said in its first quarter 2022 financial results that paying subscribers declined for the first time in a decade, and that it plans to introduce `` ad-supported low-price plans '' to improve profitability. I was. It is reported that this low-priced plan with advertisements will cost about 7 to 9 dollars (about 970 to 1250 yen) per month, and about 4 minutes of advertisement will be played for 1 hour of video playback.

Netflix Eyes $7-to-$9 Price for Its New Ad-Supported Plan - Bloomberg
https://www.bloomberg.com/news/articles/2022-08-26/netflix-eyes-7-to-9-price-for-its-new-ad-supported-plan

Netflix with ads could cost between $7 and $9 per month | Engadget
https://www.engadget.com/netflix-ad-supported-tier-pricing-report-160211150.html

The new Netflix with ads tier could cost you $7-$9 a month | TechRadar
https://www.techradar.com/news/the-new-netflix-with-ads-tier-could-cost-you-dollar7-dollar9-a-month

Netflix with Ads Pricing Said to Start from $7/month, Says Report • iPhone in Canada Blog
https://www.iphoneincanada.ca/news/netflix-with-ads-pricing-said-to-start-from-7-month-says-report/

Netflix has three plans, Basic, Standard, and Premium, but we are planning to add a 'low price plan with ads' to make it possible to provide services to a wider range of people. increase. At the time of writing the article, the most popular Netflix plan is the standard plan of $ 15.49 per month (1490 yen in Japan), but the low price plan with advertisements starts at $ 7 per month (about 970 yen), which is about half the price. It was reported that it will be about 9 dollars (about 1250 yen).

According to reports, Netflix's low-priced plan with ads will play about 4 minutes of advertising video when playing a video for 1 hour. That's far less than its competitors' offerings, sources told Bloomberg. Although Netflix plans to play advertisements before and during playback of some content, it does not seem to plan to play advertisements at the timing after content playback is completed.

In addition, according to sources, Netflix's advertising plan is not designed to overwhelm viewers with a large amount of advertisements, so Netflix wants to make small contracts with advertisers in advance. It is also reported that

In addition, Netflix plans to introduce a low-priced plan with advertisements in at least six markets in the three months from October to December 2022, and the full-scale service start is scheduled for the first half of 2023 . Netflix has announced that it will partner with Microsoft on a low-priced plan with ads, and it is reported that other new movies and children's content are designed to prevent ads from flowing.

Advertisements may not flow in new movies and children's content even with Netflix's planned ``advertising plan''-GIGAZINE

A low-priced plan with ads that Netflix plans to introduce could increase Netflix's annual sales to $ 8.5 billion (about 1.2 trillion yen) by 2027, consultancy Ampere Analytics said. I am predicting. In the first quarter of 2022, Netflix recorded record sales of $7.868 billion (about 1.1 trillion yen).

Cable TV networks that compete with Netflix in the US play around 10-20 minutes of advertising per hour. On the other hand, video streaming services have much less ad playback time per hour than cable TV networks. However, ``There are cases like Hulu that play the same advertising video over and over to annoy viewers,'' Bloomberg said.

As mentioned above, Netflix seems to want to avoid showing the same ads to viewers over and over again like Hulu by 'signing small contracts' with advertisers. Netflix plans not to do too much targeting in order to provide ads that are suitable for each viewer. In addition, Netflix seems to be using Microsoft's advertising technology in partnership, Bloomberg said, ``Microsoft has little experience with video streaming services, but an annual $ 10 billion (about 1.4 trillion yen) advertising business. We have

Many advertisers, partners and investors are skeptical about Netflix's plans, as Netflix has refused to comment specifically on the low-priced plans with ads. Netflix preaches the benefits of introducing a low-price plan with ads using its own audience indicators, but it is a prediction of how many people will use the low-price plan with ads. We do not publish or authorize third-party projections.

Netflix's introduction of a low-price plan with ads is close to the timing when rival service Disney + introduces a plan with ads. However, Disney + will raise the existing plan and introduce a plan with advertisements while maintaining the current price, while Netflix will offer a cheaper plan with advertisements.