According to Bloomberg, Netflix is considering charging between $7-9 for the upcoming ad-supported subscription. The goal is to attract subscribers who think Netflix costs too much and can imagine watching advertising in exchange for a lower monthly cost.
The source also writes that Netflix aims to show about four minutes of advertising per hour. The information comes from people who are supposed to have insight into Netflix’s plans. The advertising will be shown before and during films and series – but not after.
Bloomberg writes that Netflix wants to avoid frustrating customers, for example by not showing the same ads time and time again. The advertising is also claimed to be less targeted, so that most customers will see the same ads.
Netflix has said that the new subscription is expected to be generally available in early 2023. Microsoft will handle the advertising. According to an analysis company, the subscription with advertising could generate a total of 8.5 billion dollars for Netflix annually. The sum includes revenue from the subscription itself and from advertising.