Netflix reportedly sets US$7-9 price point for ad-supported tier

Stranger Things 4

Netflix has reportedly decided on a price tag of between US$7-9 per month for its ad-supported tier when it launches in the US.

The company is launching an ad-supported product in an effort to save its flailing subscriber numbers after the company dropped users for two consecutive quarters and lost its position as the world’s largest streaming operator to Disney.

Following reports that the ad-tier will not show ads against kids content or allow for offline viewing on mobile, Bloomberg has said that the company will cut its monthly subscription cost in the US by half.

The report goes on to note that Netflix is planning on selling about four minutes of ads per hour, while showing ads before and during some programmes. It adds that Netflix is telling advertisers that it wants to make smaller deals upfront in order to avoid overwhelming customers. 

Ampere Analysis has estimated that Netflix could generate US$8.5 billion per year by 2027 via its new tier. The company had previously announced a deal with Microsoft for the Xbox-maker to be its tech and sales partner.

Netflix’s biggest streaming rival Disney will launch its ad-tier in the US on December 8, with the product costing US$7.99 per month.