Netflix’s plan to release ad-supported tiers which would cost less than the current plans with zero adverts has been in the making for quite a while now, as we covered the news a few months ago. As we near the predicted fourth-quarter release of the ad-supported tiers, Bloomberg has published a report regarding Netflix’s plans, as well as claims of how much the new tiers will cost.
The publication claims the new tiers will cost between $7 (Ksh 840) and $9 (Ksh 1,080) depending on which plan you currently subscribe to. Now, it is worth noting that this pricing is for the USA and other international markets, and since Kenya has slightly different tiers including a free mobile tier, our mileage will definitely vary.
The current USA plans with no ads start at $9.99 for the Basic plan, rising up to $19.99 for the Premium plan that has support for 4K UHD streaming. Therefore, users on the Basic plan stand to save at least $2 monthly should they opt into the ad-supported plans when they are launched later in the year.
Netflix has been toying with the idea of ad-supported tiers for a few years now, however with the news earlier in the year that the company had lost subscribers for the first time in more than 10 years, it became prudent for Netflix to find other ways to attract new customers as well keep those that are already subscribed. Microsoft has already been chosen to be Netflix’s technological partner in delivering the ads.
Probably to push customers towards the ad-free offerings, the ad-supported tiers will not have a few features, for instance, some content will be missing at launch in addition to the ability to download shows for offline viewing being locked away.
Bloomberg explains that Netflix aims to air approximately 4 minutes of ads per hour, which will be shown at the start of the content as well as in the middle. Kids’ content will however not be targeted for advertisements.
The company is targeting to release the ad-supported plans to 6 markets first towards the end of the year, with plans for a wider launch to more countries at the start of 2023.
Once launched, Netflix would have followed in the footsteps of other streaming providers like Disney Plus who have already confirmed a December release for their own ad-supported tier as well as HBO Max which already has an ad-supported plan going for $10