Netflix Plans to Charge $7 to $9 for Ad-Supported Plan

Netflix is planning to charge between $7 and $9 for its upcoming ad-supported tier, according to a new report from Bloomberg. Netflix's current lowest-priced plan is $9.99 per month in the United States, with the plan offering 480p streaming.

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Netflix also has a $15.49 per month plan for 1080p streaming, and a $19.99 per month plan for 4K streaming. The lower-cost ad-supported tier is aimed at those who don't mind ads and who do not want to pay $9.99+ for a standard Netflix subscription.

Ads will be shown before and during TV shows and movies, and Netflix plans to sell approximately four minutes of advertising per hour, which will be shorter than the 10 to 20 minutes of commercials per hour shown by cable companies. Customers will not be able to skip ads or access playback controls while ads are playing, but Netflix does want to limit ad targeting and make sure ads are not too repetitive.

The ad-supported tier will have more restrictions than more expensive tiers, and Netflix does not plan to allow customers subscribed to the plan to download TV shows and movies for offline viewing.

Netflix has turned to ads because it has not been able to maintain subscriber count. The company lost subscribers for the first time in 10 years in the first quarter of 2022, and blamed "a large number of households sharing accounts" and "competition."

Netflix is aiming to introduce the more affordable plan in limited markets before the end of the year, but a full rollout may not happen until 2023.

Tag: Netflix

Top Rated Comments

HiVolt Avatar
13 weeks ago
To only offer it in 480p is laughable.
Score: 57 Votes (Like | Disagree)
max2 Avatar
13 weeks ago
Failure at launch.
Score: 50 Votes (Like | Disagree)
TheYayAreaLiving ? Avatar
13 weeks ago
Overall, Netflix makes no sense. I hate ads. Netflix will continue to lose subscribers because of this.

The fact it’s 2022, and Netflix is offering 480p streaming is beyond embarrassing. No shame!
Score: 45 Votes (Like | Disagree)
StellarVixen Avatar
13 weeks ago
The money tap is drying out, everyone is looking to squeeze the last drop from the market by any means possible.

Really a sight to behold
Score: 31 Votes (Like | Disagree)
Chaos215bar2 Avatar
13 weeks ago

After a year, it'll be the #1 plan. Other streamers either offer ad-lite for a lower price rom the start, or added them later.

You think its silly, but its not for many other people.
It's incredible how little so many people value their own time and attention, that anyone would even consider paying around $8 to watch ads when they could spend just a few dollars more per month to skip them.
Score: 26 Votes (Like | Disagree)
nburwell Avatar
13 weeks ago
So theoretically $8.99 for ads and $1 more for no ads? Doesn't make much sense. They'd be smart to start at $6.99, but it doesn't seem like Netflix execs are that.
Score: 24 Votes (Like | Disagree)

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