Netflix will reportedly charge between $7 and $9 per month for their new advertising-supported subscription plan.
The new budget-friendly subscription plan will be introduced in the fourth quarter of this year across at least six different geographic areas, however the full rollout will likely not occur until next year.
The plan will offset subscription fees with four minutes of commercials per hour, delivered at the beginning, during, and after the programming, according to sources.
Netflix has not publicly commented on the report.
Netflix will be joining Walt Disney Co, which announced its own ad-supported subscription option for its Disney+ streaming service later this year.
It is hoped that the ad-supported plan at Netflix will attract new subscribers who are willing to watch shows with advertisements, in return for roughly half off the current subscription fee of $15.49 per month.
Netflix is introducing the ad-supported plan after reporting it lost about 200,000 subscribers in Q1 as inflation squeezed consumer’s pocketbooks.
In April, Chief executive Reed Hastings said, “Those who have followed Netflix know that I’ve been against the complexity of advertising, and a big fan of the simplicity of subscription. But as much as I’m a fan of that, I’m a bigger fan of consumer choice.”
Netflix has already chosen Microsoft as its sales and technology partner for the ad-supported plan.