Netflix ad subscription plan to be launched at the end of the year

Streaming service Netflix has set a price for its ad-supported subscription tiers that is roughly half the price of its current monthly subscription, according to a report from Bloomberg today (August 27).

The report said Netflix is ​​targeting a price range of $7 to $9, a significant discount from its current $15.49 monthly plan. The new tier will be the first time Netflix will feature ads during viewing.

This price is similar to the $8 per month price of Disney+, an ad-supported subscription service that will be launched in December this year. For many years, Netflix has refused to add ads to its service. Before announcing the change in strategy, Netflix's subscription price was raised, and its monthly price of $15.49 became the top of all streaming service subscription prices.

Bloomberg reports that the ad option will be first introduced in six test regions during the last three months of this year and will be fully implemented early next year.

Netflix executives have acknowledged that the loss of subscribers has led to the need for advertising, and Bloomberg estimates that the new ad-supported subscription tier will generate $8.5 billion in revenue annually by 2027, a combination of subscription service fees and advertising revenue.

Netflix has declined all requests for comment on its advertising subscription fees.