Even more clarity is emerging regarding Netflix’s planned ad-supported price tier. Since announcing the addition to the company’s subscription options, speculation has been rampant over which model Netflix would follow for its lower-priced tier. Would it skew closer to HBO Max, expensive but with relatively few ads, or Paramount+ which is cheaper but advertises heavily on its ad-supported tier?

On Friday, we apparently got some clarity; according to a report from Bloomberg, Netflix is focusing on a price point between $7 and $9 per month for its ad-supported price tier. That’s roughly half of the cost of a current subscription to Netflix’s Standard tier.

How Does Ad-Supported Netflix Compare With Other Ad-Supported Streamers

Based on this report, it appears that Netflix will stick much closer to the HBO Max strategy, with fewer ads and a higher price point for its ad-supported tier. Netflix Original movies, as well as kids programming won't have any ads, at leas at first. Netflix also plans to use less targeted marketing than other streamers, and will attempt to avoid the Hulu strategy of bombarding customers with the same ads over and over. One negative aspect ad-supported Netflix customers will definitely notice: they will not be able to download and watch shows and movies offline.

Analysts are bullish on the returns Neflix may see from its introduction of an ad-supported tier. Projections show a potential $5.5 billion increase in revenue for Netflix by 2027 thanks to the ad-supported plan. The ad-supported tier will be introduced in a few markets by 2022’s end, with a wider rollout expected in early 2023.

It’s no surprise that the announced price point for Netflix’s ad-supported plan is so close to that of Disney+. The two streamers will launch their ad-supported tiers around the same time (Dec. 8 for Disney+), and Disney is also planning to introduce their ad-supported tier with minimal ads per hour. It will be fascinating to see if the companies see similar success, however, the parallel moves are expected to be lucrative for both.

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Netflix is a leading subscription-based video streaming service that offers on-demand access to an extensive library of over 3,000 movies, 2,000+ TV shows, and a growing collection of acclaimed Netflix originals. Renowned for producing groundbreaking content, Netflix has become a cultural powerhouse with hit originals like “Stranger Things,” “Wednesday,” “Squid Game,” “The Crown,” “Tiger King,” “Bridgerton,” “The Witcher,” and “Black Mirror.”

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The platform constantly updates its catalog, introducing fresh content alongside timeless classics and international hits. Netflix’s commitment to storytelling has also earned critical acclaim, with award-winning exclusives such as “Roma,” “Marriage Story,” “The Power of the Dog,” “Mank,” and “Ma Rainey’s Black Bottom.” In 2023, their animated film “Guillermo del Toro’s Pinocchio” won an Academy Award for Best Animated Feature, further solidifying Netflix’s reputation for high-quality content.

Recently, Netflix has expanded beyond standard movies and TV titles with the addition of video podcasts, and is also exploring a digital store that would offer third-party streamers within the app.

Netflix offers three plans – stream on 2 devices in HD with the “Standard with Ads” ($8.99) plan, on 2 devices in HD with the “Standard” ($19.99) plan, and 4 devices in up to 4K on the “Premium” ($26.99) plan.

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