Canadian Netflix users will see a new membership option starting Tuesday that costs less but comes with a catch: commercial breaks inserted into their favourite shows.

After years of uninterrupted binge-watches, the world91裸聊视频檚 largest streaming service is making way for a word from its sponsors. And as inflation continues to pinch consumers, the proposal of a cheaper Netflix plan may sound enticing to some.

Netflix isn91裸聊视频檛 alone in believing that commercial television is back in a big way.

Several free ad-supported streaming services will launch in Canada over the coming weeks, all of them built on a business model that taps into the country91裸聊视频檚 multi-billion advertising industry to finance and acquire programming.

Analysts say together the platforms could reshape how we watch and pay for television. More viewers are complaining that streaming costs have soared near the level of their old cable bills, which has pressured each service to reconsider its business model.

91裸聊视频淐onsumers are faced with more choice, more platforms and are making more deliberate decisions as to which streaming services they keep and which ones to cancel,91裸聊视频� said Justin Krieger, senior technology and media analyst at consultancy firm RSM Canada.

Of the newcomers, Pluto TV debuts on Dec. 1 with more than 100 channels of free TV series, movies and sports that stream 91裸聊视频渓ive91裸聊视频� online on a platform that mimics the experience of channel surfing, complete with the commercials.

Around the same time, CBC introduces a revamped free streaming news channel that will be available on CBC Gem and multiple other streaming platforms. A flagship program hosted by Andrew Chang of 91裸聊视频淭he National91裸聊视频� will be the main attraction with advertisements will be interspersed throughout the day.

South of the border, Disney Plus rolls out an ad-supported option later this year with some industry observers predicting it will apply the same model in Canada soon after. The ad tier will be introduced at the price of Disney91裸聊视频檚 existing commercial-free service. Subscribers who want to eliminate the ads will have to pay a premium.

Each service has its own reasons for getting into the ad business.

For Netflix and Disney, one of the main drivers is growing revenues as programming costs soar and competitors lure away subscribers.

Meanwhile, the free streaming services use ad revenues to fund a slate of original and licensed programming, which puts incredible pressure on Netflix to maintain its leading position with attractive new films and shows.

NETFLIX91裸聊视频橲 PITCH

Earlier this year, after repeatedly swearing off the possibility of ever getting into advertising, Netflix changed its tune by announcing it would launch an ad tier for subscribers in key international markets.

In Canada, the 91裸聊视频渂asic with ads91裸聊视频� plan costs $5.99 per month 91裸聊视频� less than the plans without ads, which start at $9.99 and peak at $20.99 a month.

As a trade-off for the savings, Netflix says subscribers will be presented with an average of four to five minutes of ads per hour played before and during their TV shows and films.

Video quality on the Netflix ad plan tops out at 720p, leaving full high-definition streaming at 1080p and 4K for premium subscribers. Viewers also won91裸聊视频檛 be able to download titles on their devices and not everything in the service91裸聊视频檚 library will be available.

Those restrictions will sour the appeal to many Netflix devotees, suggested Carmi Levy, a technology analyst based in London, Ont.

He said Canadians were sold the idea of a commercial-free Netflix a decade ago which led other entrants in the market to mimic their approach with similar models.

That91裸聊视频檚 different than the United States where Peacock, Paramount Plus and HBO Max all offer less expensive ad tiers as a subscription option, while Crackle and Amazon91裸聊视频檚 Freevee are among the major players in free, ad-supported platforms.

91裸聊视频淐anadians don91裸聊视频檛 have that legacy of experience and as a result may be more resistant to the way Netflix is introducing that service,91裸聊视频� he said.

91裸聊视频淚t91裸聊视频檒l take time for Netflix and others to educate Canadians on the advantages of paying less for a streaming service and getting ads served up in return.91裸聊视频�

DO CANADIANS WANT ADS?

Kaan Yigit, a technology analyst at Solutions Research Group, said a survey conducted by his firm earlier this year found U.S. viewers have already adopted ad-supported subscription options.

About 40 per cent of HBO Max subscribers signed up for its lower-priced ad tier, he said, while an average of 58 per cent of subscribers used the cheaper versions of Paramount Plus and Peacock.

He estimates a modest 20 per cent of Canadian Netflix subscribers will join the ad tier over the next 12 to 18 months.

However, Netflix91裸聊视频檚 initial sign-up numbers won91裸聊视频檛 be the best indicator of long-term success for the ad model, suggested Levy.

Subscribers who joined for a deal could be turned off if the ad breaks become as long as they are on network TV stations, which typically air 20 minutes of commercials per hour.

91裸聊视频淭he devil is always in the details whenever a streaming provider introduces an ad-based tier,91裸聊视频� Levy said.

91裸聊视频淲hat matters most is how intrusive that presentation of ads is to the overall viewing experience. And if it is intrusive in the way that consumers have long complained about traditional broadcast television ads, then this could very well be a non-starter for Netflix.91裸聊视频�

THE AD AGENCIES

Until those intricacies play out, advertising agencies say their clients are salivating over the prospects of new placement options in the Canadian market.

91裸聊视频淲hat we91裸聊视频檙e seeing is a lot of initial excitement and questions around Netflix, in particular,91裸聊视频� said Marissa Cristiano, an account director at Cossette who says she91裸聊视频檚 91裸聊视频渆xploring91裸聊视频� ad buys on the service with some clients.

91裸聊视频淭hey91裸聊视频檝e done a really good job of creating 91裸聊视频� the type of content that brands really do want to ally with.91裸聊视频�

Cherie Hill, senior vice president of media at marketing firm Society, Etc., said she anticipates Netflix ads will be angled toward 91裸聊视频渂udget-conscious91裸聊视频� shoppers, with a strong focus on consumer staples, household items and car companies.

She doesn91裸聊视频檛 anticipate much blowback from viewers, mainly because Netflix is making it an opt-in proposition.

91裸聊视频淚f you91裸聊视频檙e choosing to have the commercials, it91裸聊视频檚 not going to leave a negative experience,91裸聊视频� she said.

91裸聊视频淭hey91裸聊视频檙e providing an option and they91裸聊视频檙e managing expectations.91裸聊视频�

David Friend, The Canadian Press

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