Netflix’s upcoming ad-supported tier could cost $7 to $9 a month, According to a report Bloomberg. Depending on the plan you’re currently paying for, this could potentially save you a lot of money; the company currently offers plans for $9.99, $15.49, and $19.99 per month.
After the company reported losing subscribers for the first time in more than a decade, co-CEO Reed Hastings said in April that the company was ready to consider ad-supporting cheaper products, despite rejecting the idea of advertising for years. Co-CEO Ted Sarandos confirmed the ad tier started work in June, and Netflix announced Microsoft as a technology partner to help run ads in July.
Perhaps unsurprisingly, the ad-supported tier will be downgraded from the ad-free plan; executives say the ad tier will be missing some content at launch, and code found in its mobile app suggests Netflix may not let Users download programs at the ad-supported tier for offline viewing.
Bloomberg Friday’s report revealed more details on the ad tier. The company aims to sell ads for about four minutes per hour and wants to show ads before and in the middle of the content. Earlier this week, Bloomberg report Netflix does not plan to include advertising in its children’s content or original movies. Netflix aims to launch an ad-supported program in “six markets” in the last quarter of the year, Bloomberg Say. The company plans to roll out this layer more broadly in early 2023. Netflix did not immediately respond to a request for comment.
The new advertising program comes at a turbulent time. After a staggering drop in subscriptions in April, Netflix reported another drop in subscriptions three months later. Netflix also raised prices on all of its U.S. plans in January — the third such hike in recent years — and is testing ways to turn password-sharing viewers into customers who pay for additional streams. The company is facing competition from other streaming services such as Disney Plus, with its own ad-supported plan launching in December, and HBO Max launching in June 2021 with a $10 ad-supported plan that doesn’t require downloads or 4K streaming.
