Netflix Ads Are Coming to the Philippines Soon. What Do the New Subscription Tiers Look Like?

Last week, streaming giant Netflix announced that subscribers in various countries, including the Philippines, will soon be seeing ads with their content. It's part of the platform's new move to mitigate stagnation and its early 2022 losses.

Netflix has rejected ads since it started. Earlier this year, however, it reportedly lost 970,000 subscribers. Hence, the adoption of an ad-supported revenue model, which has been the backbone of traditional television for years.

"The timing is great because we really are at this pivotal moment in the entertainment industry and evolution of that industry," Netflix COO Greg Peters said in a briefing.

The price for the new monthly subscription tier will be at $6.99. This won't be available in the Philippines just yet. In the upcoming tier plan, ad breaks will appear every hour, with each lasting about four to five minutes.

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As it stands, the current Basic plan we have right now in the Philippines is priced at P369 while the Standard is at P459. For the new Basic plan is up, audiences get shorter ad durations at about 15 to 30 seconds per showing. It, unfortunately, comes with quite the cost: fewer shows and movies will be available. On top of that, subscribers won't be allowed to download content freely anymore.

Basic with Ads will be launching in countries like the United States, Australia, France, Japan, Korea, and Spain, among others.

Netflix has also made it clear that it would not be allowing political ads and that audiences will have ads tailored just for them. Ads will vary by country and by genre.

Ads and the newly minted Netflix games (yes, there's a dedicated tab for them now) are part of Netflix's new strategy to drive growth in the near future. Time will tell if it can attract more investors and keep subscribers on the service.