A new report from Bloomberg provides us with a significant amount of news regarding Netflix’s upcoming ad-supported plan. According to the article, which neglected to name sources as discussions are private and ongoing, Netflix is looking to price its cheaper plan somewhere between $7-to-$9. That price is about half as much as the average customer pays for the popular $15.49 plan that allows viewers to watch anything on the service without advertisements.
Additionally, Netflix is planning to ease consumers into this plan and doesn’t want to overwhelm anyone with a significant number of ads right off the bat. As such, the company is looking to only sell about four minutes of ad space per hour. For comparison, broadcast shows usually have 10 to 20 minutes of advertising per hour.
Kid’s programming and original movies will also not have ads, at least at first. Netflix is also looking into the possibility of placing ads in the shows it license. Bloomberg reports that company’s like Warner Bros., Sony and Universal are happy to allow ads in older shows that ran with commercials on broadcast initially, but less inclined to do so for newer series.
Another interesting shift will be in viewing metrics. Netflix has played coy with how it tracks viewership ratings but moving into advertising will require the company to use a metric like Nielsen to track how many people are watching its programs.
It’s worth noting that Netflix is trying to be consumer-friendly by looking into ways to ensure consumers are not getting repeat ads (a common complaint for Hulu users) since advertisements won’t be tailored to viewers. Most of the advertising work will be handled by Miscrosoft Corp. The company previously won the right to be the streamer’s exclusive advertising technology and sales partner.
Keep in mind that any of this information could change as nothing has been officially confirmed by Netflix yet.
How much will Netflix’s ad-supported plan cost?
Early reports are indicating that the plan will cost between $7 and $9. For comparison, Hulu charges $6.99/month for its ad-supported tier, but that price is increasing this October to $8 (or $7.99, I presume). Disney+ will launch its ad-supported tier this December for $7.99 and HBO Max’s ad plan is $9.99.
When will Netflix launch its cheaper, ad-supported plan?
The Bloomberg article suggests Netflix will start launching the cheaper plan in the last three months of 2022 in “at least a half dozen markets.” The wider launch probably won’t happen until early 2023.