Netflix’s Ad-Supported Tier Is Reportedly Launching in November for $7 to $9 a Month

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Image: Netflix

Netflix’s new ad-supported option is seemingly just two months away.

Per a new report from The Wall Street Journal about how the streamer is “seeking top dollar for brands to advertise on its service,” Netflix is aiming to launch its ad-supported tier on November 1. The date stems from ad buyers, who have reportedly expressed surprise at the steep prices for ads that Netflix is seeking for its “untested” platform.

Here’s what Netflix is supposedly charging advertisers, which is “substantially higher” than most other streamers, according to The Wall Street Journal:

Executives from Netflix and Microsoft Corp., which is supplying the technology to facilitate the placement of video ads on Netflix, met with some ad buyers last week, some of the buyers said. Netflix is seeking to charge advertisers roughly $65 for reaching 1,000 viewers, a measure known as CPM, or cost per thousand, the buyers said.

Netflix plans to cap the amount that any brand can spend annually at $20 million to ensure that no brand over-advertises on the service and that users don’t get sick of seeing the same ads, but the streamer expects to eventually be able to charge advertisers about $80 for every 1,000 views, as noted in an older report from The Wall Street Journal about how the company is “scrambling to learn the ad business it long disdained.”

“We are still in the early days of deciding how to launch a lower-priced, ad-supported tier,” Netflix said in a statement. “No decisions have been made.”

A report from Bloomberg last week suggested that Netflix’s ad-supported plan would cost $7 to $9 a month, “half as much as its current, most-popular plan, which costs $15.49 monthly with no commercials.”

Source: The Wall Street Journal

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Tsing Mui
Tsing has been writing the news for over 5 years, first at [H]ard|OCP and now at The FPS Review. He has a background in journalism and makes sure to give his readers the relevant context to why each news post matters.

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