Netflix mulls $7-$9 per month for its ad-supported subscription – Bloomberg News

(Reuters) – Netflix Inc is seeking to cost about $7 to $9 monthly for its new advertising-supported subscription plan, Bloomberg information reported late on Friday.

The corporate plans to introduce its budget-friendly possibility within the closing three months of the 12 months throughout a minimum of half a dozen geographies. Nevertheless, the total rollout could have to attend till early subsequent 12 months, the report stated.

It plans to promote round 4 minutes of commercials per hour for the ad-supported service, exhibiting advertisements earlier than and through the exhibits, the report stated, citing individuals aware of the matter. (https://bloom.bg/3KpYa7s)

The streaming big declined to touch upon the report and its pricing plan.

Rival Walt Disney Co had in March introduced it’ll supply a less expensive, ad-supported model of its Disney+ streaming service later this 12 months.

Netflix’s purpose is to draw subscribers who’re prepared to observe exhibits with ads, at nearly half of its present worth plan that prices $15.49 monthly.

The plan for ad-supported subscription comes after it reported a lack of about 200,000 subscribers within the first quarter this 12 months in opposition to the backdrop of rising inflation squeezing shopper spending.

“Those that have adopted Netflix know that I have been in opposition to the complexity of promoting, and an enormous fan of the simplicity of subscription. However as a lot as I am a fan of that, I am a much bigger fan of shopper selection,” Chief govt Reed Hastings had stated in April.

In July, the corporate selected Microsoft because the know-how and gross sales companion for the ad-supported subscription plan.

(Reporting by Rachna Dhanrajani in Bengaluru; Modifying by Arun Koyyur)