Netflix Inc. is thinking about charging $7 to $9 per month for its new ad-supported tier, which would be 50 percent less than the cost of its most popular plan, which is now available for $15.49 a month without commercials.
The objective is to draw customers who are ready to view certain advertisements in exchange for a lower monthly fee. The industry leader in streaming TV is getting ready to launch advertising for the first time, and it is working carefully to find a way to appeal to customers who are more cost-conscious while still providing a good experience.
Netflix Hopes To Increase Sales With The New Plan
According to people familiar with the company’s plans, Netflix expects to sell only four minutes of commercial time every hour for the ad-supported service, significantly less than most of its competitors. In some cases, the corporation will run commercials before and during the broadcast, but not afterward. According to the individuals, who declined to be named because the conversations are private, it is also telling advertisers that it wants to make smaller deals up front so it does not overpromise and overload viewers with the advertisements.
During the last three months of the year, Netflix intends to roll out its new, more affordable alternative in at least a half-dozen markets. The whole deployment might have to wait until the beginning of next year, according to the business. As Netflix prepares its preparations and interacts with commercial partners, information about the service has started to leak.
They think the less-priced tier will both draw in new users who are concerned about prices and provide those who are prepared to cancel with a less expensive option. Including subscription fees and ad revenues, the new tier may bring in $8.5 billion annually for Netflix globally by 2027, according to media consulting firm Ampere Analytics.