Netflix is considering charging $7 to $9 (about Rs 550 to Rs 700) per month for its new ad-supported tier, which is 50% less than the price it’s currently charging on its most popular plan. Currently, Netflix’s ad-free plan costs $15.49 (about Rs 1,230) per month. The markdown is aimed at attracting more customers who want to see some ads for a lower monthly fee. As for the ad-supported service, the streaming service allegedly sells four minutes of ads per hour.
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According to a recent report by Bloomberg, the world’s largest streaming service Netflix is considering reducing the cost of the ad-supported tier. The ad-supported plan may cost between $7 and $9 per month due to the low prices. Remember, this will only cost you about half of what Netflix now charges for its most popular plan, which is $15.49 per month with no ads.
Simply getting new customers to the service who don’t mind seeing some ads by paying less to watch the content is the point of lowering the price. As was already known, Netflix expects to sell about four minutes of ads for every hour of the ad-supported service. According to reports, the company airs advertisements before and during select shows, but not afterwards.
As rival Disney+ said in May this year, Netflix’s streaming will likely aim to keep children’s content ad-free and not run commercials during child-friendly movies and TV shows. According to TechCrunch, children’s content on Netflix will remain commercial-free. However, it is believed that original shows such as “Stranger Things”, “Bridgerton” and “Squid Game” will continue to show ads.
The American Psychological Association and other organizations have urged severe restrictions on advertising to children. Analysts believe that Netflix generates $4 billion in ad sales annually, making it one of the major players in online video advertising.