According to a late Friday report from Bloomberg news, Netflix Inc. plans to charge between $7 and $9 per month for its new advertising-supported subscription plan.
The business intends to roll out its cost-effective option in at least six different geographies during the last three months of the year. The report indicated that the full rollout might not be ready until early in the following year.
According to the report, which relied on people with knowledge of the situation, it intends to sell four minutes of commercial space per hour for the ad-supported service, which will air ads both before and during the shows.
The king of streaming chose not to comment on the story or its pricing structure.
Rival In March, Walt Disney Co. revealed it would launch a less expensive, ad-supported version of its Disney+ streaming service later in the year.
The objective of Netflix is to entice customers who are willing to watch shows with advertisements at a price that is almost half of its current monthly subscription plan of $15.49.
After reporting a loss of about 200,000 subscribers in the first quarter of this year against the backdrop of rising inflation squeezing consumer spending, the company announced its plan for an ad-supported subscription.
“Those who have followed Netflix know that I’ve been against the complexity of advertising, and a big fan of the simplicity of subscription. But as much as I’m a fan of that, I’m a bigger fan of consumer choice,” Chief executive Reed Hastings had said in April.
The company selected Microsoft in July as its technology and sales partner for the subscription service that is ad-supported.
(Adapted from FinancialExpress.com)