Netflix’s ad-supported tier could cost between $7 and $9 per month

Netflix’s next ad-supported tier could cost between $7 and $9 per month, according to a report by Bloomberg. Depending on the plan you are currently paying for, this could be a significant savings; the company currently offers plans at $9.99, $15.49, and $19.99 per month.

After the company reported that it had lost subscribers for the first time in more than a decade, co-CEO Reed Hastings indicated in April that the company was open to considering a cheaper ad-supported offer, despite years of dismissing the idea of ​​ads. Co-CEO Ted Sarandos confirmed the ad tier was in the works in June, and Netflix announced Microsoft as the technology partner helping to deliver ads in July.

Unsurprisingly, the ad-supported tier will suffer downgrades from ad-free plans; Executives said some content will be missing from the ad-level at launch, while code spotted in its mobile app says Netflix may not allow users to download ad-supported level of shows for offline viewing. .

Bloomberg’s Friday’s report sheds light on a few more details on the level of advertising. The company aims to sell around four minutes of ads per hour and wants to run ads before and in the middle of the content. Earlier this week, Bloomberg reported that Netflix does not plan to include ads with its children’s content or original movies. Netflix aims to launch the ad-supported plan in “half a dozen markets” in the last quarter of this year, Bloomberg said. The company plans to launch the level more widely in early 2023.

In an email to The edgeNetflix spokesperson Kumiko Hidaka said that BloombergThe report is “only speculation at this stage”. She said the company “was still in the early days of deciding how to launch an ad-supported tier at a lower price and no decision had been made.”

The new ad plan comes at a turbulent time. After the shocking fall in subscriber numbers in April, Netflix reported another drop in subscribers three months later. Netflix also raised prices on all of its plans in the United States in January — its third price hike in recent years — and is testing ways to turn password-sharing viewers into customers who pay for additional streams. And the company faces competition from other streaming services like Disney Plus, whose own ad-supported plan is set to launch in December, and HBO Max, which launched a $10 ad-supported plan in June. 2021, no downloads or 4K streaming.

Updated August 26, 8:17 p.m. ET: Updated with Netflix’s statement on the report.


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