Ad-Supported Netflix Tier Could Cost $7 to $9 Per Month
Netflix's cheaper, advertising-supported subscription could cost between $7 and $9 a month—about half the price of a current standard plan—according to Bloomberg(Opens in a new window).
The streaming giant is prepping an ad-based tier to attract more paying customers amid concerns of rampant password sharing and slowing growth.
After revealing that more than 100 million households are sharing Netflix passwords, CEO Reed Hastings announced in April that the company is exploring the launch of an ad-supported tier within a year or two. Bloomberg, however, says the ad-based Netflix could launch later this year in about a half-dozen markets, adding that "a lot could change" as Netflix continues to meet with partners and finalize plans.
The cheaper option will run similarly to Hulu's $6.99 ad-supported plan (soon to be $7.99)—and could cost about the same—with about four minutes of commercials per hour before and during (but not after) some programs, Bloomberg says. Microsoft beat Google and NBCUniversal to serve as Netflix's exclusive advertising provider.
Subscribe to the ad-supported tier, however, and you'll pay a price—and not just the $7 to $9 Bloomberg suggested. While the "vast majority" of streaming content will be available, CEO Ted Sarandos in July noted that Netflix is still in talks with studios about streaming certain series and films. "We will clear some additional content, but certainly not all of it," Sarandos said, adding that "we don't think it's a material holdback to the business."
Aside from occasional promotions and some missing movies and shows, there's another catch: Earlier this month, TechCrunch reporter Steve Moser took a deep dive into the Netflix app code, revealing that ad-supported-tier
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