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Netflix intends to introduce an ad-supported streaming service in late 2022


Netflix (NFLX) has been tight-lipped about the cost and specifics of its new ad-supported plan. Bloomberg’s recent pricing predictions of $7 to $9 were denied by the company. According to a Netflix rep, the company is still having internal conversations about the cost of the plan, which will be available in select areas by the end of 2022.

According to Bloomberg, the streaming behemoth is planning to price its commercial-supported service between $7 and $9 to compete with its competitor Disney. Disney plans to debut its ad-supported streaming platform on December 8, 2022. The new plan will cost $7.99 per month replacing the previous monthly cost of the standard Disney+ subscription, which would increase 38% to $10.99 per month.

Netflix charges a monthly fee ranging from $9.99 to $19.99, based on the number of users on the same account. Its most popular plan has a monthly cost of $15.49.

As per Bloomberg, executives hope to air 4 minutes of commercials before and during each hour of streaming. According to the article, which cited unidentified sources, the company does not intend to promote during children’s programming or within the service’s original movies.

There are high expectations for streaming giant’s ad-supported strategy to potentially increase its total number of subscribers and commercials, providing another income stream. Pricing of plans is an important factor to monitor in the increasingly competitive streaming business.

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