The proposed ad-supported service from Netflix is likely to cost between $7 and $9 per month, depending on the type of plan chosen by the subscriber and it could result in significant savings. According to a report from Bloomberg, the company which is currently offers plans at $9.99, $15.49, and $19.99 per month, the ad-supported version will have some downgrades from the no ads plans.
Sources also reveal that Netflix executives have said that some content will be missing from the ad service version during the launch. It is understood that Netflix may not let users on the ad-supported tier download shows for offline viewing.
In terms of Ad Volumes, Bloomberg report stated that the streaming company aims to sell approximately four minutes of ads per hour and wants to show ads ahead of and in the middle of content. However, Netflix doesn’t plan to include ads with its kids content or original movies.
Netflix is planning to launch the ad-supported plan in “half a dozen leading markets” in the final quarter of this year, Bloomberg says. The company plans to expand the service more broadly in early 2023.
The new ad plan arrives at a turbulent time. After April’s shocking drop in subscribers, After the company reported that it lost subscribers for the first time in more than a decade, co-CEO Reed Hastings indicated in April the company was ready to consider a cheaper offering supported by advertising, despite years of spurning the idea of ads. Co-CEO Ted Sarandos confirmed the ad tier was in the works in June, and Netflix announced Microsoft as the technological partner helping to deliver ads in July.
While resounding a query from The Verge. Netflix’s spokesperson Kumiko Hidaka said that Bloomberg’s report is “all just speculation at this point.” She said that the company is still in the early days of deciding how to launch a lower priced, ad supported tier and no decisions have been made.
