Netflix May Charge Between $7 and $9 for Ad-Supported Tier

Daniel Attoe
Daniel Attoe

Updated · Aug 29, 2022

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Depending on a user’s current plan, this could represent significant cost savings. The anticipated tier may be rolling out later this year.

Budget-Friendly Pricing

If a Bloomberg report is accurate, then Netflix may have set a price range for its upcoming ad-supported plan. According to the news publication, the streaming service is considering charging subscribers between $7 and $9 for the tier.

Netflix’s current plans are $9.99, $15.49, and $19.99 per month. 

Up until this year, the company was adamant it would not be offering either a free plan or one supported by ads. However, after it recorded subscriber losses for the first time in over a decade in Q1, co-CEO Reed Hastings disclosed a move in that direction.

By June, Ted Sarandos, its other chief executive, confirmed that plans were underway. The following month, Netflix announced that tech giant Microsoft had become its “global advertising technology and sales partner” for the upcoming package.

What to Expect?

Netflix is dealing with an even worse subscriber loss in Q2 while fighting off rivals like Disney+. With the new plan, the company hopes to corner a section of the market that find regular subscription fees too unaffordable.

However, as expected, there will be a tradeoff. For one, users of the ad-supported tier may have to watch four minutes of ads every hour. In addition, they will not be able to download content for offline viewing. 

While the full library of original content from the world’s top streamer will be available, it will restrict some licensed content for the ad-supported plan.

Sources.

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Daniel Attoe

Daniel Attoe

Daniel is an Economics grad who fell in love with tech. His love for books and reading pushed him into picking up the pen - and keyboard. Also a data analyst, he's taking that leap into data science and machine learning. When not writing or studying, chances are that you'll catch him watching football or face-deep in an epic fantasy novel.

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