One of the biggest mysteries surrounding the ad-supported Netflix plan is the starting price and how the new tier will compete with current Netflix subscriptions. Bloomberg It claims to have figured out Netflix’s price targets for the ad-supported tier, and we may 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. Additionally, the new subscription could be available to people in early markets before the end of 2022.
Netflix ad-supported subscription plan
At $7 to $9 per month, Netflix’s ad-supported subscription would match the ad level of Disney Plus, which will cost $7.99 per month. But it will be slightly less expensive than the current cheapest Netflix plan.
Netflix subscriptions currently start at $9.99, but the $15.49 mid-tier plan is the most popular option.
According to by Bloomberg Sources, Netflix plans to introduce the new subscription in the fourth quarter of 2022. The ad-supported subscription will be available in at least half a dozen markets at launch.
The report doesn’t specify markets, though launch markets are likely to include the US and other major 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 Netflix’s ad-supported plan will have some limitations beyond just having to watch commercials. The company may not allow downloading of TV shows and movies for offline viewing. That makes sense, since any ad-supported service requires an Internet connection.
Additionally, Netflix said it may not be able to offer its entire catalog to customers at the ad level. And not all movies and TV shows will have commercials.
Bloomberg provided additional details about the Netflix experience with ads.
Netflix will reportedly play about four minutes of commercials per hour. The streamer will serve you before and during a show, but not at the end.
Also, Netflix supposedly doesn’t want to overwhelm viewers with ads. And you don’t want to show the same ads over and over again. Microsoft will handle the ad sales side of the business, a partnership Netflix has already announced.
But Netflix won’t offer targeted advertising, at least not initially. Additionally, it’s unclear how Netflix will measure and share ad-related metrics with advertisers.
Additionally, Netflix will reportedly not include ads in children’s programming or its original movies. But Netflix wants to have ads on its TV shows. It is also working on deals with other studios to add commercials to licensed content.
These studios might be willing to allow ads on older shows that aired with commercials. But they may be reluctant to allow ads on newer programming.
Netflix has yet to confirm these details for the ad-supported plan. However, the experience doesn’t sound too bad for 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.