According to Bloomberg news, Netflix is planning to charge between $7 and $9 per month for its new subscription plan that is supported by advertising.
The business intends to roll out its cost-effective solution in at least six different geographies during the last three months of the year. The analysis indicated that the entire rollout might not be ready until early in the next year.
It plans to sell around four minutes of commercials per hour for the ad-supported service, showing ads before and during the shows, the report said, citing people familiar with the matter.
The streaming giant declined to comment on the report and its pricing plan.
Rival Walt Disney in March announced it would offer a cheaper, ad-supported version of its Disney+ streaming service later this year, Reuters reports.
Netflix’s goal is to attract subscribers who are ready to watch shows with advertisements, at almost half of its current price plan that costs $15.49 per month.
The plan for ad-supported subscription comes after it reported a loss of about 200,000 subscribers in the first quarter this year against the backdrop of rising inflation squeezing consumer spending.
“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,” Chief executive Reed Hastings had said in April.
In July, the company chose Microsoft as the technology and sales partner for the ad-supported subscription plan.
