According to a report from Netflix, the upcoming ad-supported tier of Netflix could cost between $7 and $9 per month bloomberg, Depending on what plan you currently pay for, this can be a significant savings; The company currently offers plans for $9.99, $15.49 and $19.99 per month.
After the company reported losing customers for the first time in more than a decade, co-CEO Reed Hastings indicated in April that the company was considering an affordable offering backed by advertising, despite years of rejecting the idea. was ready. Co-CEO Ted Sarandos confirmed that the advertising tier was in the works in June, and Netflix announced Microsoft as a technical partner to help advertise in July.
Perhaps surprisingly, the ad-supported tier will have some downgrades from no ads plans; Officials have said that some content will be missing from the ad tier at launch, while code seen in its mobile app indicates that Netflix may not let users download shows from the ad-supported tier for offline viewing.
of bloomberg Friday’s report sheds light on some more details of the ad level. The company aims to sell ads of about four minutes per hour and wants to show ads in front and between content. earlier this week, bloomberg reported that Netflix has no plans to include ads with its children’s content or original movies. Netflix is aiming to launch the ad-supported plan in “half a dozen markets” in the last quarter of this year. bloomberg it is said. The company plans to launch the tier more widely in early 2023. Netflix did not immediately respond to a request for comment.
The new advertising plan comes at a turbulent time. After a shocking drop in subscribers in April, Netflix reported another subscriber drop three months later. Netflix raised its prices across all of its plans in the US in January — its third price hike in recent years — and is testing ways to turn password-sharing viewers into paying subscribers for additional streams. And the company is facing competition from other streaming services like Disney Plus, which has its own ad-supported plan set to launch in December, and HBO Max, which launched a $10 ad-supported plan in June 2021, without Comes for download or 4K streaming.