The price for Netflix’s upcoming and controversial ad-supported tier has reportedly been revealed, and it may not prove to be the deal some had been hoping for. A new report from Bloomberg suggests the streaming company is weighing plans to charge $7 to $9 per month for ad-supported viewing, and while it will be Netflix’s cheapest subscription tier yet, it won’t be by much.
Currently, Netflix subscribers have their choice between three different subscription tiers, and while they all come with different perks, they have one thing in common – no ads. Following the price hike in January, the lowest-cost option, the basic plan, costs $9.99, with the standard plan coming with a price tag of $15.49. The most expensive plan, the premium tier, costs $19.99 per month. This means that while the upcoming ad-supported tier will be about half the price of the most popular tier, the standard plan, it will only manage to save subscribers $1 to $3 per month off of the basic plan if Bloomberg’s figures are correct.
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Set to be introduced as a means to attract subscribers hoping to save some money, the planned ad-supported tier was first confirmed by Netflix co-CEO Reed Hastings in April amid the streamer’s first loss of subscribers in more than a decade. However, since that confirmation, details about the new tier have been blurry. Bloomberg, citing people familiar with Netflix’s plans, did report that Netflix aims to sell approximately four minutes of ads per hour and wants to show ads ahead of and in the middle of content, but not after. Ads will also not be included in kids’ content or original movies, according to the outlet. The streamer also reported that the company is “telling advertisers it wants to make smaller deals upfront so it doesn’t overpromise and overwhelm viewers with the spots, said the people.”
In a statement to The Verge, however, a Netflix spokesperson Kumiko Hidaka cast some doubt on Bloomberg‘s report, telling the outlet that the report is “all just speculation at this point.” Hidaka added that Netflix is “still in the early days of deciding how to launch a lower priced, ad supported tier and no decisions have been made.”
At this time, a launch date for the ad-supported tier hasn’t been announced, though it is believed it will be available sometime in 2023. Bloomberg reported that Netflix is eyeing an introduction of the tier in “half a dozen markets” in the final quarter of this year, with plans to further rollout the ad-supported tier in 2023, though those claims have not been confirmed.
