After Netflix lost hundreds of thousands of subscribers this year, the company has been desperately working on new ways to retain and gain subscribers. One of the moves is a new ad-supported plan announced in partnership with Microsoft. And while most of the details of this new plan remain unclear, it seems that the plan may be priced between $7 and $9.
A new ad-supported tier on Netflix
According to a new Bloomberg report citing sources familiar with the matter, Netflix is considering charging between $7 and $9 for its new ad-supported plan. Currently, Netflix’s cheapest plan that offers only 480p content for a single device costs $9.99 per month.
The plan is targeted at consumers who find Netflix’s plan prices unaffordable and are willing to watch some advertisements to pay a lower monthly fee. Subscribers to the new ad-supported plan are expected to watch four minutes of advertisements every hour – which is still less than on competing platforms and even regular TV.
Of course, the less expensive plan comes with some downsides. Users won’t be able to download content to watch offline (after all, the whole idea of this plan is to show ads to subscribers) and not all licensed content will be available on this plan. Still, subscribers will have access to Netflix’s full catalog of original movies and series.
It’s also unclear whether Netflix will let subscribers to the ad-supported plan watch video in resolution higher than 480p. Currently, the plan with HD streaming costs $15.49 per month, while the most expensive plan with 4K streaming costs $19.99 per month.
Netflix blamed users who share their account passwords with friends and family for the decline in subscriber numbers. According to the company, more than 100 million people use Netflix without paying for a subscription. The company is testing an experimental feature in Latin America that charges users who share their Netflix passwords with others.
Other platforms are doing the same
Netflix is not alone when it comes to introducing a new ad-supported plan. Earlier this month, Disney+ announced that it will increase the price of its subscription in the US, which will go from $7.99 to $10.99 per month – a 37.5% increase. Consumers will be able to continue paying $7.99 per month as long as they agree to see ads while watching movies and shows.
According to Disney, the new Disney+ subscription plans will go into effect on December 8. As for Netflix, there’s no word yet on when the ad-based tier will be available to consumers, but rumors suggest that the new plan will become available later this year.
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