Netflix’s upcoming ad-supported plan may cost $7 to $9 a month, according to Bloomberg. The company is expected to launch this cheaper plan later this fall in a couple of markets, with a full rollout to follow in early 2023.
For subscribers, $7 to $9 a month is roughly half the price of Netflix’s Standard plan at $15.49/month. Compared to Netflix’s basic plan at $9.99/month, this upcoming ad-supported plan also won’t have all of the platform’s content. As for the number of ads subscribers will see, Netflix is said to be proceeding carefully.
“Netflix plans to sell about four minutes of commercials per hour for the ad-supported service, far less than most of its peers, according to people familiar with the company’s plans. The company will show advertisements before and during some programs, but not after,” the report reads. “It’s also telling advertisers it wants to make smaller deals upfront so it doesn’t overpromise and overwhelm viewers with the spots, said the people, who declined to be identified because the discussions are private.”
According to the media consultancy company Ampere Analytics, this new ad-supported plan could help Netflix gain an additional $8.5 billion in revenue per year by 2027. The company has chosen Microsoft as its advertising technology and sales partner to make it happen.
Netflix won’t be the only streaming platform to introduce a new ad-supported plan this year. Disney+ is also planning to launch a similar plan in December, and it will also raise the price of its existing ad-free plan to $10/99/month along the way.
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