Netflix is reportedly considering pricing its new advertising-supported tier at USD$7-9 a month – half as much as its current, most-popular no commercials plan at $15.49 monthly, according to Bloomberg.
The goal of the streamer, which will introduce the option of advertising for the first time, is to attract subscribers who are willing to watch some ads in exchange for a lower monthly rate.
Netflix plans to sell about four minutes of commercials per hour for the ad-supported service, much less than most of its peers, and at first won’t have them during kids programming or its original movies.
The company will reportedly show advertisements before and during some programs and aims to avoid Hulu’s oft-complained issue of the same spots repeating over and over again.
The option will roll out in the last quarter of the year in at least a half dozen markets, with a full rollout waiting until early next year. Media consultancy Ampere Analytics indicates the new tier could generate as much as $8.5 billion a year globally for Netflix by 2027.
Netflix hasn’t provided forecasts of how many people it thinks will sign up for the ad tier.
