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Netflix Will Remove Ads On Fourth Episode If Users Binge-Watch Three In A Row

Netflix is rolling out a new offering with the working title "Binge Ad."


Netflix has announced a new feature for the company's ad-supported streaming tier, and it involves binge watching. A new format with the working title "Binge Ad" will launch in Q1 2024, and it will allow users on the ad-based plan to watch a fourth episode with no ads if they binge-watch the previous three.

Netflix said this new offering aims to leverage the popular viewing behavior where users watch multiple episodes in a row, known as binge-watching. Binge-watching is a very popular phenomenon on Netflix and other streaming sites, so it's no surprise to see Netflix go even further and actively encourage people to do this by offering a reward for doing so. It may also help Netflix increase its own viewership stats.

For years, Netflix balked at the idea of adding ads to its platform, but the company finally launched a lower-priced, ad-supported tier in November 2022. It's gone on to become a big success, helping to drive more account sign-ups. Not only that, Netflix can charge a subscription fee ($7/month) and get money from brands for ads, providing Netflix another way to make lots of money.

Netflix's recent price hike, too, does not apply to the ad-based tier, making it even more potentially attractive to users when considering signing up for Netflix or changing their plan. As of Netflix's latest accounting, the ad-based plan had 15 million monthly active users globally.

In addition to the new binge-watching feature, Netflix's ad tier recently added sponsorships in the US, and this program will expand to more places around the world in 2024. Advertisers will be able to pay Netflix to sponsor a show. The popcorn Smartfood was the sponsor of the latest season of Love Is Blind, for example. Additionally, Netflix's Squid Game: The Challenge series will have sponsors, as well as the final season of The Crown.

Netflix is also rolling out "moment" sponsorships, which allow advertisers to pay Netflix to have targeted ads around specific holidays, for example. The upcoming Netflix live sports show, The Netflix Cup, will have sponsors including T-Mobile, Nespresso, and more.

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