Netflix recently announced that their ad supported plan will cost between $7 to $9 per month. In comparison, their basic single plan cost $9.99 a month while its most popular plan which covers full HD streaming on 2 screens costs $15.99 a month.

This new plan will show around 4 minutes of commercials per hour which is the same or less than its competitors. This new plan was originally set to be released next year, but maybe pushed up the last quarter of this year. Users that buy the ad-supported plan won’t have full access to the catalog initially due to licensing deals with different studios. Estimates forecast that ads on Netflix will generate $8.5 billion in revenue by 2027. A study published by Digital TV Research in May suggests that the global ad-supported video on demand (AVOD) market will grow to $70 billion by 2027 — with the U.S. generating $31 billion.

Netflix is not alone in its plan to introduce ads to their platform. In March, Disney+ confirmed that it is planning to introduce a similar tier by the end of the year with a $7.99 per month pricing. Warner Bros. Discovery also said it’s exploring an ad-fueled plan for the new service — slotted to launch in 2023 — created by the merger of HBO Max and Discovery+.

Source: https://techcrunch.com/2022/08/28/netflixs-ad-supported-plan-could-cost-as-low-as-7/