Bloomberg reports Netflix’s ad-supported plan could cost $7 to $9 per month. Depending on your existing plan, you could save a lot; the company provides $9.99, $15.49, and $19.99 rates.
Reed Hastings, Netflix’s co-CEO, indicated in April that the company was investigating a cheaper, ad-supported plan after losing users for the first time in over a decade. Ted Sarandos announced Netflix’s ad tier in June and designated Microsoft a tech partner in July.
Some content will be missing from the ad-supported tier at launch, and Netflix’s mobile app coding suggests customers may not be able to download series for offline viewing.
Netflix wouldn’t confirm Bloomberg’s story, stating Gizmodo, “They have made no decisions”. This is all speculation.”
Netflix has never featured advertising in its programming, and Bloomberg reports the business wants to cater to cost-conscious users while providing a pleasurable viewing experience. This ad-supported tier will have four minutes of ads per hour, according to Bloomberg. The corporation will air commercials before and during shows, but not after. Bloomberg believes the tier will be offered in “at least six” markets in the last three months of 2022, with a bigger distribution in 2023.
Netflix previously said Microsoft would help build its new ad campaign. Netflix COO Greg Peters said in July that Microsoft gave the opportunity to innovate on the technology and sales sides and robust privacy protections for subscribers. Microsoft has no expertise with ads on streaming platforms, yet its ad business is worth $10 billion.
The ad-supported tier sounds similar to what I have on Hulu, but this is Netflix bandaging a bullet wound. Netflix’s problem isn’t that customers are leaving; they’re are struggling with their “quantity above quality” strategy. Furthermore for every Netflix hit, there are a trillion misses, and those hits may be cancelled. Moreover, Netflix should focus on restricted, high-quality programming rather than throwing everything at the wall to see what sticks.