Netflix launches ad-supported subscriptions, here’s what they’ll cost

By Vic Medina | Published

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Netflix is ​​getting closer to launching its ad-supported streaming service, and thanks to a new report from Bloomberg, we now know what it’s likely to cost. Lucas Shaw reports that the world’s largest streaming service is looking at a price of around $7 to $9 per month, about half the going rate for HD video and two simultaneous streams ($15.49). It would be close to the same price Disney+ is looking to charge for its own ad-supported service launching in December, which will cost $7.99. It would also be cheaper than HBO Max’s ad-supported service, which launched in June of this year and costs $9.99 a month.

Deadline reports that the announcement comes as streaming services face new challenges, as consumers look to save money during the current economic downturn and more services compete for subscribers. By the end of the year, all three of the biggest streaming services (Netflix, HBO Max and Disney+) will offer ad-supported plans, all as Netflix struggles to stay on the streaming throne with its nearly 210 million subscribers. In a statement, Netflix denied the reported details, saying they are still in the “early days” of making decisions about the service.

The report indicates that Netflix is ​​looking to add around four minutes of ads during each hour of programming, with ads running before and during shows, with no ads running after. That’s fewer ads than viewers see in a half-hour of television broadcast (which is often five to ten minutes of ads), but slightly less than viewers of the ad-supported Paramount+ service watch per hour (according to our estimates). observations). The new discount service is expected to debut in six select markets between October and December of this year, with a full rollout nationwide next year.

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Not only is Netflix in heated competition with numerous services, many of which didn’t exist five years ago, but it’s also struggling with subscriber loss. It lost almost a million subscribers in the second quarter of 2022, which is actually good news as they were expecting to lose up to two million subscribers. Recent controversies with Netflix scheduling and a recent fee hike didn’t help. With the summer over and without renowned premieres like strangest thingTo attract viewers, Netflix will need an edge to remain competitive against Disney+ and HBO Max. Hence the cheapest option and with advertising.

Once upon a time, streaming services sold themselves on the concept of watching ad-free programming, at far cheaper rates than cable, which viewers loved. However, with more streaming services taking bites out of consumer budgets, households often find themselves paying more than ever for TV services. Additionally, free streaming services like Tubi, Roku, Pluto, and Freevee have become popular options and have changed viewer attitudes toward ads on streaming services. Netflix had long dismissed the idea of ​​running ads on its platform, but with HBO Max and Disney now hot on their heels, the switch came quickly. Bloomberg estimates that the new service will generate more than $8 billion a year in revenue within five years, which is good news for the streamer, which has cut its recent $1 billion spending spree to create new content.

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