Netflix Ad-Supported Tier Targets $7 to $9 Monthly Price Point
Netflix plans to launch a new ad-supported subscription tier costing between $7 and $9 per month. The tier includes around four minutes of ads per hour and restricts access to the full content catalog.
Netflix prepares to launch an ad-supported subscription plan that costs between $7 and $9 per month. This new pricing undercuts the company's current basic plan, which costs $9.99 per month, and offers a more affordable entry point for budget-conscious viewers. Netflix partners with Microsoft to handle the advertising sales for this upcoming tier.
The streaming giant plans to show approximately four minutes of commercials per hour of programming, placing its ad load on par with or below competing services. These advertisements appear before and during shows, but Netflix intentionally avoids showing ads after an episode concludes. Additionally, the company keeps kids' content and original movies ad-free during the initial rollout of this tier.
Subscribers to this budget-friendly option face a few notable restrictions compared to standard plans. The ad-supported tier does not include offline viewing capabilities and limits access to the entire content library due to existing licensing agreements. Netflix initially launches this plan in at least six markets during the final quarter of the year to compete with similar ad-supported tiers from rivals like Disney+.