The big talk at this year’s upfronts was that Netflix was planning to launch an ad-supported tier of its service. But there are still many unanswered questions about an ad-supported Netflix. Below are a few we have tried to answer:
What will it cost? Netflix currently charges $9.99 a month for its basic service, and $15.49 a month for up to two streams. A Premium tier that allows up to four streams costs $19.99 per month. Netflix hasn’t yet said what the basic service with ads will cost, but estimates are that Netflix will charge around $5.99 a month for an ad-supported offering.
Is there demand for such an offering? According to a Morning Consult poll, 57% of American consumers prefer a low-cost version of Netflix over one they have to pay more for. Of course, the details matter. The average time of commercial loads is 13.3 minutes per hour, according to MoffettNathanson research. Assuming that Netflix doesn’t go over this threshold, the thinking is that viewers will abide with breaks along that space.
Will Netflix viewers who hadn’t considered an ad-supported tier make the jump? A survey in mid-2021 by Hub Entertainment Research said that 46% of Netflix viewers would make that switch, if the offering was priced at around $5 a month.
When will the tier be available? Netflix says that an offering will be available by the end of the year.