Netflix with ads tier could cost you $7-$9 a month
What we don’t know is how much cheaper Netflix’s ad-supported tier will be. According to a recent rumor, the pricing range that Netflix is now exploring is $7 to $9. According to Bloomberg(opens in new tab sources), the streaming service is expected to incorporate about four minutes of advertisements into each hour of content at this price point. It appears like Netflix will play commercials before, during, and after shows, but not after.
The $7-$9 price category is just below the $9.99 tier that Netflix currently offers, but it only gives you standard definition streaming quality. The current price of HD streaming is $15.99, so the new tier would be almost half of that. The monthly fee for the 4K package is $19.99. We assume Netflix will price the new ad-supported subscription similarly around the globe, so slightly below whatever the cheapest tier currently is: in the UK, that’s £6.99 a month, and in Australia, it’s AU$10.99 a month.
Bloomberg says that Netflix’s service that has ads will start in some markets in October, November, or December. As previously revealed, Microsoft is handling the advertising sales aspect of the process for Netflix. According to the study, Netflix takes measures to ensure that advertisements do not loop or get overly specific in order to prevent annoying its users. To put it another way, most people will see the same commercials in the time between shows.
Netflix is hopeful that its new strategy will be successful as it faces declining member numbers and growing competition from the numerous other streaming providers that have emerged in recent years. Both subscription fees and advertising space sales will contribute to its financial success. According to a Bloomberg story, Netflix is trying to give people who are about to cancel another reason not to in order to get more people who are careful with their money.
Code buried in the Netflix app hints that members on the ad-supported tier won’t be able to download series and movies to watch offline, which would be a major drawback to the new plan on top of having to go through commercials.