We know that Netflix is going to introduce a cheaper ad-supported tier, but what we don't know is how much cheaper it will be. A new report suggests that between €7 and €9 is the price that Netflix executives are currently considering.
That's according to sources who spoke to Bloomberg (opens in a new tab), and it's believed the streaming service will insert around four minutes of commercials into every hour of programming for that particular tier. Apparently, Netflix will show ads before and during shows, but not after.
The $7 to $9 price range is just shy of the $9.99 tier Netflix currently offers, but that only gets you standard definition streaming quality. The HD stream costs €15.99, so the new tier would cost about half that. The 4K plan costs €19.99 per month.
no repeats
We're guessing Netflix will price the new ad-supported service the same internationally, so it's just below the currently most affordable tier: in the UK it's £6,99 per month and in Australia it's AU$10,99. per month.
According to Bloomberg, the Netflix with ads option will launch in select markets in October, November or December. As previously announced, Microsoft is handling the ad sales portion of the Netflix operation.
The report also says that Netflix wants to avoid putting viewers off by making sure ads aren't repeated or targeted too precisely. In other words, most people will see the same ads appear between shows.
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Netflix hopes its new plan will be a success as it grapples with declining subscriber numbers and increased competition from the many other streaming services that have sprung up in recent years. You will generate revenue from both subscription fees and the ad space you sell.
According to the Bloomberg report, Netflix executives aim to attract new price-conscious customers, as well as give people ready to cancel Netflix another option to think about before they stop paying.
However, having to watch ads might not be the only downside to the new plan: hidden code in the Netflix app suggests that subscribers to the ad-supported tier won't be able to download shows and movies to their devices for offline viewing.
We'll have to wait and see if that's the case or not, but that may be something else to consider when determining if a Netflix subscription makes sense for you, and which tier offers the best value. watch.