After months of speculation over how Netflix would respond to mounting pressures on its growth and profitability, the streamer made two important announcements this week on fundamental changes to its business model.
On Monday, Netflix announced that it had reached an agreement with leading exhibitors to expand the theatrical distribution of its highly-anticipated blockbuster sequel GLASS ONION: A KNIVES OUT MYSTERY. Exhibitors including AMC, Regal, and Cinemark in the U.S. and Vue Cinemas in Europe will provide “sneak peek” screenings during a one-week run from 11/23 – 11/29, after which the movie will go back on the shelf until 12/23 when it will debut on Netflix.
Many are predicting that this is the beginning of a wider partnership between Netflix and exhibitors, to showcase their features with big budgets and wide commercial appeal. If this experiment goes well for Netflix, Apple and Amazon may pursue similar strategies.
On Thursday, Netflix also announced that its ad-supported tier of service will debut next month, as a low-cost option for consumers at $6.99/month in the U.S., $1 less than Disney+’s ad-supported tier. The ad-supported service will feature up to five minutes of ads for every hour of programming. Netflix will continue to offer its traditional ad-free service at higher monthly rates.
See also: Why Glass Onion: A Knives Out Mystery’s Release Might Change Netflix Original Movies (MovieWeb) and Netflix’s Ad-Supported Plan Will Launch in November at $6.99 a Month (Wall Street Journal)