We already know that Netflix will launch a more affordable tier that will be subsidised by advertisements, but we don't yet know by how much. According to a recent report, Netflix officials are reportedly exploring a price range between $7 and $9.
According to insiders who spoke with Bloomberg(opens in new tab), the streaming service will reportedly put about four minutes of advertisements into each hour of content for this particular tier. Netflix is reportedly going to air commercials before and during shows, but not after.
The $7–$9 price range is just below Netflix's current $9.99 tier, which only offers standard definition streaming quality. The new tier would be roughly half the price of high definition streaming, which currently $15.99. The 4K package has a monthly fee of $19.99.
No reruns
We assume Netflix will price the new ad-supported plan similarly across the board, which means it will be slightly less expensive than the existing most cheap tier, which is now £6.99 per month in the UK and AU$10.99 in Australia.
Bloomberg reports that the Netflix with advertisements option will debut in a few areas in October, November, or December. Microsoft is managing Netflix's advertising sales division, as was previously revealed.
According to the study, Netflix is concerned about not alienating users, so it makes sure that commercials don't repeat and aren't overly targeted. In other words, the majority of viewers will notice the same advertisements during commercial breaks.
the upcoming major Netflix wager
As it struggles with declining member numbers and growing competition from the numerous other streaming services that have sprung up in recent years, Netflix will be hoping that its new strategy is a success. Both the subscription fees and the advertising spots it sells will generate income for it.
According to the Bloomberg article, Netflix executives want to draw in more budget-conscious customers and provide subscribers who are considering quitting another alternative to consider before stopping their payments.
The new plan's other drawback, besides having to endure commercials, is that, according to code found in the Netflix app, ad-supported members won't be able to download content to their devices for offline viewing.
Whether or not that turns out to be the case is something we'll have to wait and see, but it's something else to think about when determining whether a Netflix subscription makes sense for you and which tier gives the best value for the content you want to watch.
In August and September 2022, all Netflix content will be discontinued
