How Much Will Ad-Supported Netflix Cost? Report Suggests Netflix Similar to HBO Max, Disney+
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
| Service | Price | Ads Per Hour | Simultaneous Streams | 4K Streaming | Offline Mode | Live Sports |
|---|---|---|---|---|---|---|
| Netflix | $7-$9 | 4 min/hr (none during Netflix Original movies | TBD | Depends on plan, not likely w/ad-supported tier | No | No |
| Disney+ | $7.99 | 4 min/hr (none during Kids content) | 4 | Yes | No | No |
| Max | $9.99 | 4 min/hr (none during HBO programming) | 3 | No | No | No |
| Peacock | $4.99 | 5 min/hr | 3 | No | No | Sunday Night Football, Premier League & WWE |
| Paramount Plus | $4.99 | 9-10 min/hr | 3 | No | No | NFL & Champions League |
| Hulu | $6.99 | 9-10 min/hr | 2 | Select shows & movies on certain devices | No | NHL & ESPN+ Upgrade |
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.
Netflix
Netflix is a subscription video streaming service that includes on-demand access to 3,000+ movies, 2,000+ TV Shows, and Netflix Originals like Stranger Things, Squid Game, The Crown, Tiger King, and Bridgerton. They are constantly adding new shows and movies. Some of their Academy Award-winning exclusives include Roma, Marriage Story, Mank, and Ma Rainey’s Black Bottom.