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