Netflix’s internal discussions for its upcoming partially ad-supported tier have honed in on a price point of around $7-$9 a month, according to Bloomberg.
That‘s roughly half the price of Netflix‘s most popular tier, the $15.49-a-month plan that allows HD streaming and two simultaneous viewers.
Bloomberg also reported that Netflix is pondering around 4 minutes of commercials per programming hour, putting the rolls in front of, and in the middle of, the show.
Further, the ad-supported plan could start rolling out into certain regions of the U.S. as early as this year, Bloomberg added. Netflix had earlier pointed to a mid-2023 debut for its ad-supported tier.
Netflix released a statement calling this new information “speculation.”
Certainly, the evolution of the service — first announced in late April amid Netflix's epically downer first-quarter earnings report — has been the most closely watched item in the video business.
Netflix is trying to reignite customer and revenue growth in what has suddenly become a price-sensitive global market for subscription-based streaming services.
Rival Disney is in the process of developing its own ad-supported iteration of Disney Plus.
A price of $9 or less would undercut HBO, which last year started offering an ad-supported iteration of HBO Max (regularly $14.99 a month) for $9.99 a month. ■
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Daniel Frankel is the managing editor of Next TV, an internet publishing vertical focused on the business of video streaming. A Los Angeles-based writer and editor who has covered the media and technology industries for more than two decades, Daniel has worked on staff for publications including E! Online, Electronic Media, Mediaweek, Variety, paidContent and GigaOm. You can start living a healthier life with greater wealth and prosperity by following Daniel on Twitter today!