One of the biggest mysteries surrounding the ad-supported Netflix plan is the starting price and how the new tier will compete against current Netflix subscriptions. Bloomberg claims to have discovered Netflix’s price targets for the ad-supported tier, and we might have a tentative release date for the new plan.
If the information is accurate, Netflix will charge between $7 and $9 per month for the ad-based subscription. Presumably, that would translate to $6.99, $7.99, or $8.99 per month. Also, the new subscription might be available to people in initial markets before the end of 2022.
Netflix ad-supported subscription plan
At $7 to $9 per month, the Netflix ad-supported subscription would match the Disney Plus ad tier, which will cost $7.99 per month. But it’ll be slightly less expensive than the cheapest current Netflix plan.
Netflix subscriptions currently start at $9.99, but the mid-tier $15.49 plan is the most popular option.
According to Bloomberg’s sources, Netflix plans to introduce the new subscription in the fourth quarter of 2022. The ad-supported subscription will be available in at least a half dozen markets at launch.
The report doesn’t specify the markets, although it’s likely that launch markets include the US and other top countries where Netflix’s growth is stalling. The report notes that Netflix intends to make the ad-supported plan available to customers in all markets where the streaming service is available.
What to expect from the new subscription
Recent reports said that the Netflix ad-supported plan will have some limitations beyond having to sit through commercials. The company might not allow downloads of TV shows and movies for offline watching. That makes sense, since any ad-supported service requires an internet connection.
Moreover, Netflix said it might not be able to offer its entire catalog to customers on the ad tier. And not all movies and TV shows will have commercials.
Bloomberg provided additional details about the Netflix with ads experience.
Netflix will reportedly play about four minutes of commercials per hour. The streamer will serve them before and during a program, but not at the end.
Furthermore, Netflix supposedly doesn’t want to overwhelm viewers with ads. And it doesn’t want to serve the same ads over and over. Microsoft will handle the ad sales side of the business, a partnership that Netflix has already announced.
But Netflix will not serve targeted advertising, at least not initially. Also, it’s unclear how Netflix will measure and share ad-related metrics with advertisers.
Furthermore, Netflix reportedly won’t include ads in kids’ programming or its original movies. But Netflix wants to have ads in its TV shows. It’s also working on deals with other studios to add commercials to licensed content.
These studios might be willing to allow ads in older programs that aired with commercials. But they might be reluctant to allow ads in newer programming.
Netflix has yet to confirm these details for the ad-supported plan. However, the experience doesn’t sound too bad at the rumored price. Four minutes of commercials per hour for $7 to $9 per month could be a good value if you’re looking to save money on your streaming subscriptions.
