Netflix Reportedly Targeting Ad-Supported Tier At $7 To $9, With Rollout Later This Year

Bruce Haring
·2 min read

A report today from financial services giant Bloomberg claims Netflix has arrived at a price point for its new advertising-supported tier, offering it at roughly half what its current and most popular no-commercials plan charges.

The report claims Netflix is aiming at a $7 to $9 rate, a substantial discount from its current $15.49 monthly plan. The new tier would be the first Netflix programming to have advertising.

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The reported Netflix range is similar to Disney’s $8-a-month rate for its ad-supported tier launching in December. Prior to its dramatic decision to embrace advertising after resisting the idea for years, Netflix had raised its subscription prices and found itself at the top end of the price spectrum with its most popular plan, now $15.49 a month.

Netflix reportedly will have four minutes of commercials per hour before and during some programs, but not after.

The ad-option will debut in the final three months of this year in a half-dozen test markets, Bloomber reports. A full rollout will happen early next year.

Netflix executives have conceded subscriber losses are leading Netflix toward more advertising. Bloomberg estimates the new ad tier will generated $8.5 billion per year by 2027, a total reflecting subscriptions and ad sales

The reported Netflix range is similar to Disney’s $8-a-month rate for its ad-supported tier launching in December. Prior to its dramatic decision to embrace advertising after resisting the idea for years, Netflix had raised its subscription prices and found itself at the top end of the price spectrum with its most popular plan, now $15.49 a month. Executives have conceded that recent declines in subscriber numbers were partly a result of the price increases.

Netflix has declined to comment on any specifics about its plans so far. What programs will have ads is a key decision hanging in the balance, but there are indications that programming aimed at children will not be targeted for ads, with original movies also excluded.

Deadline reached out to Netflix for a response on this report.

A Netflix spokesperson said, “We are still in the early days of deciding how to launch a lower priced, ad supported option and no decisions have been made. So this is all just speculation at this point.”

Dade Hayes contributed to this report.

 

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