Netflix will create a cheaper tier sponsored by adverts, although how much cheaper is unknown. Netflix is reportedly eyeing a $7-$9 price point.
According to Bloomberg, the streaming service will insert four minutes of commercials each hour of content for this tier. Netflix’s advertising appear before, during, but not after shows.
$7-$9 is barely below Netflix’s $9.99 tier, but only offers standard definition streaming. The new tier would be half the price of HD streaming ($15.99). 4K costs $19.99/month.
Not again
We assume Netflix will price the new ad-supported subscription similarly internationally, slightly below the most cheap tier: £6.99 in the UK and AU$10.99 in Australia.
Bloomberg says Netflix with advertisements will arrive in October, November, or December. Microsoft handles Netflix’s ad sales, as announced.
Netflix wants to prevent turning off consumers by ensuring adverts don’t repeat and aren’t excessively targeted. Most will see the same advertising between shows.
Netflix’s next bet
Netflix’s hopes its new plan will boost its dwindling subscriber numbers and help it compete with competing streaming services. It will make money from subscriptions and ads.
Netflix management want to recruit price-conscious users and provide people who are ready to cancel another option.
Hidden Netflix app code reveals ad-supported consumers won’t be able to download episodes and movies to watch offline.
We’ll have to see if that’s true, but it’s something to consider when deciding if a Netflix’s subscription makes sense for you and which tier gives the best value for what you want to watch.