Whether you’re a current Netflix user or are considering signing up, you may be wondering if the ad rumours are true. Will Netflix introduce ads? If so, how will Netflix ads work?
It’s fair enough to be apprehensive about Netflix adding ads to your plan. Ads can be a nuisance if you’re trying to enjoy a TV show or movie. No one likes the idea of that raunchy scene in Bridgerton being interrupted by the Go Compare man, or a Colgate commercial rudely barging into the Stranger Things series finale.
Plus, there’s also the concern of how your data will be used for ad targeting.
Read on to learn whether Netflix is adding ads to your plan and how Netflix ads work — will your account have a constant stream of ads or remain untouched?
Let’s start with the basics: is Netflix adding ads?
In actual fact, Netflix has already introduced ads. If you haven’t noticed them, that’s because Netflix has only added ads under its new Basic plan.
Launched in November 2022, Netflix Basic is a cheaper subscription option for those who don’t mind watching ads in exchange for a smaller subscription fee.
It’s currently available in Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, Spain, the UK and the US.
The other Netflix plans remain untouched by ads: if you have a Standard or Premium plan you won’t be affected.
Here’s how the different plans compare:
Why is Netflix adding ads?
According to Netflix, adding ads helps provide ‘a price and plan for every fan.’ The cheaper Basic option gives customers with tighter budgets access to Netflix’s streaming services in exchange for ads.
reach and sell screen time to advertisers and generate revenue through these partnerships.
It’s no coincidence that Netflix implemented the Basic plan right before announcing its clamp down on password sharing. By sharing passwords, as many as 222 million households access Netflix for free. Providing a cheaper option with ads encourages these users towards an affordable paid option, which in turn helps Netflix generate more revenue from ad partnerships.
How will Netflix ads work?
Here are some FAQs about how Netflix ads work.
What Netflix shows, movies and games will have ads?
Netflix ads will appear before or during most TV shows and movies on the Basic plan. Basic plan subscribers still get access to Netflix games without ads and no ads are shown on Kids profiles.
How many ads will Netflix have?
You can expect around 4 minutes of ads per hour, although this can vary.
Can you skip Netflix ads?
You can’t skip or fast-forward Netflix ads, but you can pause them.
How does Netflix ad targeting work?
Ads are personalised based on your activity on the platform. Netflix sells this data to advertisers who may target you as a potential customer based on your viewing activity.
For example, if you watch lots of Rom Coms, you may be targeted with ads for flowers, couples getaways, or other romance-related things.
Ads are also personalised based on the information you provide Netflix. When you create your profile, you enter your date of birth and gender, which Netflix uses to tailor ad targeting. Netflix also has access to your general location based on your IP address, which it uses to customise your ad experience.
Netflix’s ads policy vs. Disney+ and Amazon Prime Video
How does Netflix’s ads policy compare to other popular streaming services? Like Netflix, Disney+ offers a Basic plan for a cheaper monthly fee in exchange for targeted ads. This has essentially the same features as Netflix Basic, but at a slightly higher cost in exchange for access to Disney+’s catalogue, which includes popular movies and TV shows like Disney classics, Disney Pixar, Marvel, Star Wars and much more. Amazon Prime Video doesn’t have any ads during viewing time. Instead, all Amazon Prime Video plans integrate ads into the platform’s menu pages and catalogues. These appear as feature rotators (i.e. carousels), sponsored tiles and sponsored channels, but they never interrupt your show or movie.
| Netflix Basic | Disney+ Basic | Amazon Prime Video | |
|---|---|---|---|
| Monthly Price | £4.99 | £6.49 | £8.99 |
| Video Quality | 720p | 720p | Up to 4K |
| Available on your TV, computer, mobile phone and tablet? | Yes | Yes | Yes |
| Downloads | No | No | Yes |
| Ad duration per hour | 4 minutes | 4 minutes | 0 minutes |
Conclusion: are ads the future of subscription services like Netflix?
On the one hand, many subscription services and online streaming platforms need ads to generate revenue and continue providing the services we all love. For example, YouTube provides video entertainment entirely for free in exchange for ads.
On the other hand, misplaced, inconvenient and recurring ads are annoying. They also mean your data is sold to third parties to target you. Whether you opt in to ads to save money or not is up to you, but targeting is an understandable concern if you want to maintain privacy. If that’s you, then upgrading to an ad-free plan is certainly a consideration.
Where ads are necessary to a company’s business model, they would do well to consider if there’s a better way to advertise without selling consumers’ data.
For example, Subscription Panda helps you track all your subscription activities and spending while keeping your personal information 100% private, just as it should be. You’ll receive exclusive subscription offers tailored to you, including for your favourite streaming services, but without your data being sold to third parties.