According to recent reports, Netflix will charge between $7 and $9 for the upcoming ad-supported tier. The new report comes straight from Bloomberg, which has the promising claim of a $7 price for the new membership. However, if it ends up costing $9, then it will be almost a downgrade compared to the current basic plan that already charges $9.99 per month in the United States. Both the ad tier and the existing base plan offer 480p video streaming.
To those unaware, Netflix also charges a $15.49 per month plan for 1080p streaming. The most interesting plan has 4K HDR Streaming and offers up to 4 simultaneous screens, but has a high cost of $19.99 per month. The new ad-tier plan may give Netflix room for adjusting the pricing of existing plans. Perhaps, that could mean that the base plan will go beyond $9,99 but will also get more benefits. However, the report from Bloomberg states that the price range is still open to change.
How the Netflix new ad tier will work?
So far, there is no official info regarding the ad tier. However, the reports say that some ads will appear before and during shows and movies. Apparently, Netflix plans to sell approximately four minutes of advertising per hour. The goal of this ad tier is not simply to bring users a more affordable option, the goal is to find alternatives for revenue. Anyway, the company’s forecasts are way shorter than the 10 to 20 minutes of commercials that appear every on cable companies. As usual, customers won’t be able to skip ads or access playback controls while ads are playing. However, the big N plans to limit ad targeting and make sure ads are not too repetitive.
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Of course, the ad tier of Netflix will also have more restrictions than expensive tiers. Netflix does not plan to allow customers to download TV shows and movies. The goal of this feature is not exactly to allow people to store the content on their phones or computer. After all, the content is only available via the Netflix app. The goal is to allow users to download and store content for possible offline viewing.
The reason behind the new ad tier clearly is to increase profit and attract more customers. After all, the company has been losing several subscribers and this is an enlightening red alert. Netflix, however, blames the account-sharing practices and competition. We can also cite the company’s obsolete plan division.
As per the reports from Bloomberg and other outlets, Netflix will launch or, at least, give details of its new ad tier by the end of the year. However, a full regional launch may happen only by 2023. Microsoft will be aiding Netflix with its advertisement platform. We’re hoping for a price tag of $7, after all, that will give Netflix a small advantage over Disney+ which launched its ad tier with a $7,99 price tag.
Due to the continuous losses, Netflix is canceling shows and TV series. Apart from upcoming titles, the company also is canceling some series that don’t prove to be successful. The Resident Evil series is just one of the most recent examples. Meanwhile, the company keeps insisting on its games portfolio, that honestly, at the current state is not really interesting.