Netflix’s new ad-supported tier could be as low as $7 a month.
Bloomberg reports the streamer is considering pricing its ad-supported plan at $7 to $9 per month, which is half the price of its most popular standard plan.
Under this tier, users would be treated to four minutes of commercials per hour. This would happen before and during some programs but not after, the news outlet reports.
The ad-supported tier is set to debut during the last three months of this year in at least six markets, with the full rollout potentially happening early next year.
Netflix has already tapped Microsoft as its partner for the upcoming ad-supported tier and has been attempting to alter its programming deals with Hollywood studios, including Warner Bros., Universal and Sony Pictures Television, along with renegotiating contracts for acquired programming like Breaking Bad and NCIS, for its ad-supported tier.
The streamer is also reportedly eliminating offline viewing for subscribers in its new AVOD model.
In the streaming TV market, ad-supported tiers are becoming more popular since they give users a more affordable option in the face of rising content costs.
Ad-supported plans are already used by rival services to keep audiences, including Hulu, HBO Max, and Peacock. Additionally, Netflix’s ad-supported tier is a component of the streamer’s plan to discover a fresh source of revenue growth as it struggles with declining subscriber counts and increased competition from other media behemoths like Disney, Amazon and Warner Bros. Discovery.