Netflix shares rise more than 5% after presenting its new package with ads

The actions of Netflix were up more than 5.00%, following the announcement this morning that it will launch its new, cheaper, ad-supported streaming service in November this year.

Around 2:30 p.m. (Central Mexico time), the streaming platform was up 5.30% on the Nasdaq, trading at $232.58 per share.

This Thursday, the company announced that it will launch its new ‘Basic with ads’ plan starting on November 3 in 12 countries, including Mexico, which will cost less than the three plans that the company already has. In Mexico, the monthly rate for this plan will be 99 pesos per month.

The new service is going to have an average of 4-5 minutes of advertising for every hour of content. Each ad will last from 15 to 30 seconds and will be broadcast before and during the series or movies.

Netflix announced that to monitor the visibility and traffic of ads it forged partnerships with firms specializing in digital advertising DoubleVerify e Integral Ad Sciencewhose titles also soared on the stock market after the announcement.

Shares of Integral Ad Science rose 5.08% on the Nasdaq, while Double Verify gained 4.40%.

Despite today’s gains, Netflix shares accumulate a drop of 61.39% so far in 2022making it one of the 10 companies that lose the most out of the 500 that make up the S&P 500 (the main stock market index in the United States).

However, in the second semester it has been one of the companies that have recovered the most in the US stock market, with its papers rising more than 20 percent since June.