According to a report published by Bloomberg, Netflix’s advertisement-supported plan will cost $7 to $9 a month. This is almost half of the company’s current Standard tier, which costs $15.49 a month. The streaming giant is expected to launch its ad-supported tier in select regions by the end of this year, with a broader rollout happening in 2023.
It is worth pointing out that the ad-supported plan will not include the entire Netflix library. The company is yet to clarify what type of content it will not include in the ad-supported tier, but shows or movies that become blockbusters may not be available on the day of their releases for those paying a monthly subscription fee of $7 to $9. We will know all about it when the ad-supported tier goes live later this year.
Netflix lost around 200,000 subscribers in the first quarter of 2022, triggering the company to come up with an ad-supported plan to attract more users to its platform. The US-based streaming company is using Microsoft’s advertising technology to introduce advertisements on the platform. This, of course, will not, in any way, impact the regular ad-free subscribers. Apart from the cheaper plan, it is also planning to crack down on account sharing by making it a paid subscription.
Netflix will not be the first streaming company to introduce an ad-supported plan. Its competitor Hulu offers users an option to subscribe to their ad-supported tier. Hulu charges $6.99 a month for that. Disney is expected to launch a similar offering in December to attract more users to its platform. Time will tell whether these changes bring any positive results in revenue growth.
How many of our readers currently have a Netflix subscription? If you are a subscriber, will you switch to a cheaper plan that shows you advertisements? You can share your thoughts in the comments section below.