Netflix plans to reduce the cost of subscribing in exchange for seeing adverts, unlike the ad-supported Disney Plus.
According to Bloomberg, Netflix is planning to launch its new ad-supported service at between $7-9 a month in the US. That’s around half the price of a standard subscription and slightly cheaper than its current basic option.
In addition to the USA, Netflix with adverts is expected to roll-out across various countries. Around six countries will get the cheaper option by the end of the year, with full rollout around the world due from 2023.
In exchange for the cheaper subscription, viewers can expect four minutes of advertising. This is less than its rivals and significantly less than the number of adverts per hour on commercial TV channels in peak time.
In contrast to Disney…
Disney Plus is also planning an ad-supported version of its service. But it may not save viewers any money. Initial plans for Disney+ see subscribers choosing between accepting adverts, and paying the same as now or accepting a 37.5% price rise to maintain ad-free status.
Netflix is under pressure from shareholders to stop the flatlining of subscriber numbers. Disney, on the other hand, continues to report increases, so doesn’t have the same pressure to offer discounted access.