Netflix Refutes Reported Prices of Ad-Supported Tier

by Samantha Whidden
netflix-refutes-reported-prices-ad-supported-tier

As rumors continue to circulate about its upcoming ad-supporting tier plan, Netflix is refuting any of the reported prices. 

As previously reported, sources stated that Netflix is looking to price its ad-supporting tier as low as $7 per month. It will include advertising loads of four minutes per hour. The service will match up against fellow streaming platform Disney+, which will launch its ad plans in December at $7.99 per month. 

However, Netflix stated on Monday (August 29th) that the reports of ad-supporting tiers being between $7 and $9 are just speculation at this point. “We are still in the early days of deciding how to launch a lower-priced, ad-supported tier, and no decisions have been made,” a rep explained. “So this is just speculation at this point.” 

Netflix now offers ad-free options that are ranging from $9.99 to $19.99. This depends on how many users log into the same account. The current most popular plan costs $15.49 in the U.S. The plans for the ad-supported plans come just months after the streaming service announced it would be cracking down on account sharing. 

Although it now has 200 million users, Netflix has reportedly lost more than one million subscribers this year alone. Although the pricing for the ad-support tier remains a mystery, the company notably isn’t planning to advertise during children’s programs or within the streaming platform’s original films. This was reportedly cited by anonymous sources. 

Meanwhile, Netflix is celebrating its 25th anniversary. Reed Hastings and Mark Randolph found the company in 1997 as a DVD delivery service.

Netflix Co-CEO Reed Hastings Stated He’s Open to a Cheaper Ad-Supported Plan 

While speaking to The Verge in April 2022, co-CEO and founder of Netflix, Reed Hastings, stated that he’s actually open to the thought of cheaper, ad-supporting plans. 

Hastings shared that the idea of ad-supporting tiers for Netflix is something that “makes a lot of sense” for consumers who would like to have a lower price and are advertising tolerant. Meanwhile, there are also discussions about what consumers can expect from the platform in the future. “I’m not saying that we’ll never do sports but we’ll have to see a path to growing a big revenue stream and a great profit stream with it,” co-CEO Ted Sarandos shared with Deadline as well. 

Sarandos went on to add that Netflix is expanding its content verticals constantly. “For us, look at games as a great example of adding something brand new to the service, something new for our members to enjoy. We’re going down the game path because it fits us really nicely, our ability to tell stories and build worlds are very consistent with our existing skillset and culture and we think we can build a big revenue and profit stream by adding games.”

Outsider.com