The new tier of Netflix subscriptions supporting ads will reportedly cost $7-9 per month, rumoured to launch as early as later this year,
According to Bloomberg, the new ad-supported tier will cost somewhere between $7 and $9. That’s lower than the current standard price for Netflix subscriptions, which is $15.49.
We don’t know when this new tier will be added to the service yet. However, it’s rumoured to be launching later this year after we previously thought it could have a 2023 release date. The ad supported tier was officially announced back in June, making its plans to bring in new customers with a cheaper service pretty clear.
And it’s no surprise, considering that Netflix has been losing subscribers at a pretty rapid rate. The company lost almost 1 million subscribers in a 3 month period between April and June this year. In the quarter before that, they lost another 200,000.
Netflix Ads – the New Service
The new ad supported tier will aim to bring in customers who may not be able to afford the standard price. These viewers will have to watch ads before and during the shows, though Bloomberg mentioned that they will not have to see them after finishing a show. The ads will be around four minutes in length every hour.
Apparently, the ads will not be included in children’s shows or original Netflix movies. So if you mainly use Netflix for kid’s programmes, it may be worth switching to this new tier. For everything else, ads will be shown as standard.
However, nothing has actually been confirmed by Netflix yet, so take this with a grain of salt. It does seem like a logical step for the company, which is keen to make changes in the face of more competition. Services like Disney+ and Amazon Prime have taken a chunk out of Netflix’s market share, and it’ll be interesting to see how that develops.
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Featured Image Credit: Netflix
Source: Bloomberg