Netflix to Charge $7-$9 for Ad-Supported Popular Plan in a Bid to Attract Customers: Report

This aim behind the price cut is to bring in subscribers who are fine watching some advertisements for a lower monthly rate.

By Jasmin Jose | Updated: 27 August 2022 18:39 IST

Streaming giant Netlflix is considering to lower the prices for its ad-supported tier

Highlights

Netflix is expected to sell about four minutes of commercials per hour
Netflix is said to show advertisements before and during some programmes
The plan without ads currently comes at $15.49 (roughly Rs. 1,230)

Netflix is reportedly considering pricing its new advertising-supported tier at $7 (roughly Rs. 550) to $9 (roughly Rs. 700) a month, which is half as much as the current subscription charges for its most popular plan. For now, Netflix's plan costs $15.49 (roughly Rs. 1,230) per month to stream content with no commercials. The aim behind the price cut is to bring in more subscribers who are fine watching some advertisements for a lower monthly rate. The streaming service is said to sell about four minutes of commercials per hour for the ad-supported service.

As per a recent report by Bloomberg, streaming giant Netlflix is considering to lower the prices for its ad-supported tier. With the low prices, the ad-supported plan may cost between $7 and $9 for a month.

To recall, this will still cost about half of what Netflix is currently charging users for its most popular plan, which is priced at $15.49 per month without any advertisements.

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The motive behind the price cut is simply to attract new subscribers to the service who don't mind watching a few advertisements by paying a lower amount to watch the content.

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As mentioned earlier, Netflix is expected to sell about four minutes of commercials per hour for the ad-supported service. The company is said to show advertisements before and during some programmes, but not after.

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