Netflix May Target Ad-Supported Tier At $7 -$9, Rollout Late This Year – Deadline
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.
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
Deadline has reached out to Netflix for a response on this report, but has not received a reply as of yet.
Dade Hayes contributed to this report.