Netflix may target ad-supported tier at $7-$9, rollout later this year

A report from today by the financial services giant bloomberg claims Netflix has arrived at a price point for your new advertising-Supported tier, offering at about half of its current and most popular no-commercial plan fee.

The report claims that Netflix is ‚Äč‚Äčtargeting $7 to $9 rates, which is a substantial discount from its current $15.49 monthly plan. The new tier will be the first Netflix programming to be advertised.

Netflix will reportedly have four minutes of commercials per hour before and during some shows, but not after.

As Bloomber reports, the ad-hoc option will debut in half a dozen test markets in the last three months of this year. A full rollout will happen early next year.

Netflix executives have admitted that the lack of subscribers is driving Netflix towards more advertising. Bloomberg estimates the new advertising tier will generate $8.5 billion per year by 2027, reflecting total subscription and ad sales

Netflix has yet to comment on any details about its plans. An important decision on which programs will have commercials hangs in the balance, but there are indications that programming targeted for children will not be targeted for commercials, with original films being excluded.

time limit Netflix has reached out to this report for a response, but has not yet received a response.

The Dead Hayes contributed to this report.

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