According to recent reports, Netflix will charge between $7 and $9 for the next ad-supported level. The new report comes directly from Bloomberg, which has the promising claim of a $7 price tag for the new membership. However, if it ends up costing $9, then it will almost be a discount compared to the current basic plan which already charges $9.99 per month in the US. Both the ad tier and the existing base plan offer 480p video streaming.
For those unaware, Netflix also charges a $15.49 per month plan for 1080p streaming. The most interesting plan has 4K HDR Streaming and offers up to 4 simultaneous screens, but it comes at a hefty price of $19.99 per month. The new ad-tier plan may give Netflix room to adjust prices on existing plans. Perhaps, that could mean that the base plan will go beyond $9.99 but you will also get more benefits. However, the Bloomberg report states that the price range is still open to change.
How will Netflix’s new ad tier work?
So far, there is no official information on the level of announcements. However, reports say that some ads will appear before and during shows and movies. Netflix apparently plans to sell about four minutes of advertising per hour. The goal of this level of ads is not simply to offer users a more affordable option, the goal is to find alternative ways to earn revenue. Still, the company’s forecasts are much shorter than the 10 to 20 minutes of commercials that appear each day on cable companies. As usual, customers will not be able to skip ads or access playback controls while ads are playing. However, the big N plans to limit ad targeting and make sure the ads aren’t too repetitive.
Of course, Netflix’s ad tier will also have more restrictions than the more expensive tiers. Netflix does not plan to allow customers to download TV shows and movies. The point of this feature isn’t exactly to allow people to store content on their phones or computers. After all, the content is only available through the Netflix app. The goal is to allow users to download and store content for possible offline viewing.
The reason behind the new level of ads is clearly to increase profits and attract more customers. After all, the company has been losing several subscribers and this is an illuminating red alert. Netflix, however, blames account sharing practices and competition. We can also cite the division of obsolete plans of the company.
According to reports from Bloomberg and other outlets, Netflix will launch or at least detail its new ad tier later in the year. However, a full regional launch may only happen by 2023. Microsoft will help Netflix with its advertising platform. We’re expecting a $7 price tag, after all, that will give Netflix a slight edge over Disney+, which launched its ad tier priced at $7.99.
Due to ongoing losses, Netflix is canceling TV shows and series. In addition to the upcoming titles, the company is also canceling some series that are not successful. The Resident Evil series is just one of the most recent examples. In the meantime, the company keeps harping on its game portfolio which, honestly, in its current state isn’t really interesting.