With
the continuous fall in the number of users and an utterly disappointing performance
in the first quarter this year, Netflix has undergone a new policy change and
is all set to launch Advertisement based model in association with Microsoft. This
means that the content on the OTT platform can be viewed at a considerably
lower price.
Netflix
since the beginning has been against showing the ad to its customer. Now, since
Netflix is launching the ad-supported subscription, this will be in addition to
the existing plans. Microsoft will manage and design the platform for its
advertisers. Netflix in April announced they are coming up with a framework to
launch an ad-supported subscription model, whose price will be less for the
consumers.
When will Netflix launch its new plan?
As
per the report published in The New York Times, the ad-supported plan from
Netflix is expected to be launched by the end of this year. However, it is not
clear yet whether Netflix will launch it worldwide or in some selective
countries.
OTT Platforms with Ad-based model:
At
present in India, Disney Hotstar, Voot, Sony Liv, Zee 5, Discovery Plus, and MX
Player runs Ad while streaming. The subscription plan on these platforms is
fairly cheaper. For instance, the annual plan of Disney Hotstar is available at
just 899. One can view Ad free Movies and Shows on this plan, with ads during
the streaming of sporting shows. Disney offers certain shows for free with the
ad.
By how much will the Netflix Price
fall?
Since
Netflix has made its way in the country. It has faced competitive pricing from
the players in the market. Disney plus Hotstar, Amazon Prime, Sony Liv, and Zee
5 have given a tough fight to Netflix and its plans. For example, the premium
annual subscription of Disney is Rs 1499, whereas the same plan for Netflix is
available at a far costlier Rs 499 a month and 4K+HDR at 649. To allure the
customer base in India it is expected that Netflix will launch a price model at
par with these existing OTT platforms.
How much will users get benefitted?
The
plans available at Netflix are considerably higher than other OTT platforms.
For this many prefer other platforms than Netflix. Before the launch of the new
Ad-supported plan, the price of existing plans will fall. Through this OTT
users will get benefitted. Users will be provided with the option of Ad-Based
and Ad-Free plans.
Why Netflix has gone for Microsoft?
The
prime reason behind this is in comparison to other tech giants, Microsoft and Netflix
shared a great share of closeness and their interests haven’t clashed in past
in any regard. Another big and far more important reason seems the availability
of top tech giants, Google, Meta, and Amazon in the streaming service platform beforehand.
Whereas Microsoft hasn’t advanced much in this regard.
Where does Netflix stand in the OTT
race?
As
per the data from the Centre for Media and Entertainment Industries (CMES) the total minutes of OTT consumption
in India has increased from 181 to 204 billion. This shows how rapidly the
users in India are increasing on the OTT platforms. In the past few years
digitalization has got a huge boost in India. The COVID pandemic has helped in
the rise of OTT users in the country. At present India has 35 Crore OTT users
which are expected to touch the 50 crore mark soon.
The challenges for Netflix:
After
hitting the Ad-based subscription model the biggest challenge for Netflix will
be Data Privacy. As per the users’ interests, their data can be harvested. Netflix
is facing the issues of password sharing, based on the multiple streaming
facility it provides on a single account.
Due
to this, people share their passwords with other people apart from their family
members. Due to this Netflix is facing huge losses. A pilot project in the
countries like Chile, Peru, and Costa Rica has been launched to tackle this
issue. As per a report published in this regard, it was found that around 33%
of Netflix users share their passwords with at least one person outside their
family.