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New Netflix Ad-Tier is Starting Soon: You Might Not Like the Details (Updated)

It’s finally happening. And you may not like the details. The dreaded Netflix Ad-tier is real. Also, password sharing will require a fee.

In April and June (2022), we reported on Netflix’s Q1 financial report and how Netflix needed to make some big changes in order to stay ahead of its competitors in the streaming market. 

Since then, Netflix has made several moves (unpopular by some), including layoffs and accelerated series cancellations, but the big change that will affect viewers the most is the implementation of a new Ad-tier

Well, that day has arrived, and here is what you need to know:

1. The Ad tier is offered in addition to its current Ad-free plan options. 

2. The Ad tier is being named Basic With Ads.

3. Basic with Ad plan will carry a subscription price of $6.99 per month in the U.S. Here is how it shakes in the rest of the world: 

Netflix with ads basic pricing plans worldwide

4. Some content will not be available on Basic with Ads. We are guessing that some of the high-profile content (such as new episodes of Stranger Things or a high-profile Netflix movie might run on the pay tiers, then become available on Basic with Ads after a period of time). 

5. The maximum video resolution will be 720p.

6. You can only watch on one device at a time. 

7.  It is expected that there will be four to five Ads per hour, which each Ad running from 15 to 30 seconds.

8. Ads will not be shown on kids’ profiles or during games.

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9. The Basic with Ads plan will not allow content downloading – streaming only. 

10. Netflix reserves the right to raise the Basic with Ads subcription price as it sees fit. 

Check out more details on the Basic with Ads Plan on the Netflix Help Center Page.

For reference, here are the current Ad-Free plans that Netflix offers.

Netflix Monthly Plans from June 2022
Previous Netflix Monthly Plans

Tip: Although not finalized, Netflix is still testing its password-sharing crackdown strategy, so don’t be surprised if a formal announcement comes soon on that too. 

Password Sharing Update (10/23/2022): Starting in early 2023, Netflix is expected to charge a fee for account sharing with others not residing and using in the same household. The exact user conditions, start date, and pricing details are still forthcoming but the pricing may be a quarter of the subscription price of the plan held by the main account holder.

The Fort Monmouth Plan

In addition to its subscription plan and password-sharing strategies, Netflix has been pursuing the possible purchase of 289 acres which was formerly a part of Fort Monmouth New Jersey, for use as both offices and a tv/movie production studio

For Monmouth, New Jersey

As of October 12, 2022, Netflix is the top bidder for the property which could cost them as much as 300 million dollars. Add to that the cost of building, staffing, and outfitting such a development, and Netflix is looking at a possible billion-dollar or more expenditure. 

In order for this to be realized, they need a lot of money, and it will have to come from its subscribers — and those willing to pay for the new streaming tier with advertising.

EIC Ian White, lives less than 2 miles from the proposed site, and has been following this story since it broke during the pandemic. It is his contention, that Netflix is likely to close its Georgia-based studio and relocate it to Monmouth County — but only if the State of New Jersey agrees to a rather generous tax abatement request and makes some changes to local infrastructure including the NJ Transit stations in Long Branch, Little Silver, and Monmouth Park.

There are a number of local political hurdles for this to overcome as well; Ft. Monmouth borders Tinton Falls, Eatontown, West Long Branch, Long Branch, Little Silver, and Shrewsbury Township — a recent plan by Jared Kushner to completely redesign the Monmouth Mall (which sits less than 1 mile from Ft. Monmouth) which has already lost 50% of its tenants during the pandemic was blocked by less than two dozen local residents who threatened to sue over traffic and noise issues.

The closure of Ft. Monmouth during the Bush administration cost the region over 20,000 full-time jobs which were moved to Aberdeen, Maryland.

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The proposed studio would create over 2,000 full-time jobs and help local real estate developers who went on a building spree during the pandemic to meet the demand of NYC residents who fled Brooklyn and Queens for the Jersey Shore.

Kevin Smith, Bruce Springsteen, Bon Jovi, and other television, movie, and Wall Street executives live on the Shore; Smith (who grew up in Leonardo, New Jersey) recently purchased the building and store used in Clerks and Clerks III, and plans on converting them into a comedy club, indie movie facility, and a new apartment for himself.

Stay tuned…

UPDATE (12/1/2022): Interview with Netflix CEO Reed Hastings. Interesting discussion on the streaming wars, the current state of Netflix, and its future.

What Does The Future Hold For Netflix? (Updated)

Netflix Loses 200K Subscribers In Q1 2022 – And Over 1 Million In Q2!

Disney Announces New Streaming Subscription Plans And Pricing: Netflix Should Be Worried

Warner/Discovery Merger Means Big Changes For HBO MAX

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