March 24, 2023

  • Netflix announced in April that it wanted to launch a cheaper, ad-supported plan.
  • The company is considering charging $7 to $9 a month for that level, Bloomberg reported Friday.
  • Netflix’s most popular Standard plan is roughly double that, at $15.49 a month.

Netflix’s ad-supported subscription tier may be less than half the price of its most popular Standard plan, according to a new report.

The company is considering plans to charge $7 to $9 per month for ad-supported viewing, Bloomberg reported later Friday. Under this tier, Netflix aims to run four-minute commercials per hour before and during, rather than after, shows, Bloomberg reported, citing people familiar with the company’s plans.

Netflix’s most popular subscription, its standard option, currently costs $15.49 per month. Its basic plan costs $9.99 per month, while the premium plan (which includes HD capabilities) costs $19.99.

Netflix co-CEO Reed Hastings said in April that the company, which has been known for being ad-free for years, was exploring the possibility of an ad-supported program.

“Those who follow Netflix know that I’ve always been against the complexity of advertising and the simplicity of subscriptions,” he said at the time. “But as much as I love that, I prefer consumer choice, and it makes sense to give consumers who want lower prices and advertising tolerance to get what they want.”

Co-CEO Ted Sarandos spoke more about the plan in a May interview with The New York Times.

“For us, it’s all about simplicity in one product, one price point,” Sarandos said. “I think it can withstand some complexity now.”

The news comes at a pivotal time for Netflix. That same month, the company saw its first net loss of users in more than a decade.

Netflix did not immediately respond to Insider’s request for comment.

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