Netflix has revised its formula with advertisements: it will soon offer 1080p quality and will be able to support two screens at the same time. Without additional cost. Only the Essential package remains condemned to 720p.
In November 2022, Netflix added a new formula to its offer, based on the integration of advertisements. For the multinational, the objective is twofold: to maximize its income (thanks to advertisements) and to offer an even lower price (5.99 €, against 8.99 € for the basic option called Essential). This attractive subscription, called “Essential with advertising”, will undergo an evolution, Netflix announced in its financial results published on April 18.
Concretely, the “Essential with advertising” formula will switch to 1080p quality (against 720p today) and add a second screen. The aim is therefore to offer the same services as the “Standard” option at €13.49 per month. The twelve markets are concerned by this improvement expected for this month (Canada and Spain can benefit from it now). The price of €5.99 will remain unchanged.
Netflix condemns its Essential formula
By making this choice to greatly improve the “Essential with advertising” subscription without changing the price, Netflix voluntarily condemns the “Essential” option. The latter offers much less (720p against 1080p, 1 screen against 2), despite a higher bill (8.99 € against 5.99 €). The “Essential with ads” formula is now compared to the “Standard” offer, with the following question: are you ready to pay less by broadcasting a few advertisements during your binge-watching sessions (4-5 minutes per hour) ? The savings made are still €7.5 per month.
Netflix Deals Update (April 2023):
| Essential with advertising | Essential | Standard | Premium | |
|---|---|---|---|---|
| Price | €5.99 | €8.99 | €13.49 | €17.99 |
| Quality | 1080p | 720p | 1080p | 4K+HDR |
| Screens | 2 | 1 | 2 | 4 |
Netflix says it is currently very satisfied with the first months of the “Essential with ads” subscription, which generates on average more revenue than the “Standard” subscription (per subscriber, in the United States). For the company, there is a logical desire to make it better, to get people to subscribe to it. ” We believe these improvements will make this offer even more attractive to a wider audience and strengthen our commitment to current and future subscribers. “, she says in her press release in Q1 2023.
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