How an ad-supported tier works
The tier sits alongside the ad-free plan. Viewers on it see ad breaks before and during titles; viewers on the higher plan do not. Everything else, such as the apps and the account, is shared.
- Free with ads: no payment, the widest reach, revenue from advertising only
- Paid with ads: a lower subscription price plus advertising revenue
What an ad-supported tier earns
Revenue per viewer is the subscription price, if any, plus ad revenue: viewing hours multiplied by ads per hour, fill rate and CPM, divided by 1,000.
A paid tier with ads can earn as much per viewer as the ad-free plan once advertising is counted. That only holds if viewers watch enough hours and enough of the ad requests are filled.
Designing the tier
- Keep the price gap wide enough that the choice is obvious
- Limit ad load so that the tier is still pleasant to watch
- Differentiate on more than ads: video quality, downloads or simultaneous streams
- Decide whether every title is in the tier, or only the older part of the catalog
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