The streaming service intends to sell about four minutes of commercials per hour.
Netflix is considering pricing its new advertising-supported tier at $7 to $9 a month, reported Bloomberg. This is around half the price of its current plan, which costs $15.49 monthly with no commercials. The new tier would be the first Netflix programming to have advertising.
This is close to Disney’s $8-a-month rate for its ad-supported tier launching in December.
Netflix intends to sell about four minutes of commercials per hour for the ad-supported service. It will show advertisements before and during some programs, but not after.
It may introduce the new service during the final three months of the year in around half a dozen markets. The full rollout may begin early next year.
After Netflix lost 2 lakh subscribers, its first subscriber loss in a decade, this April, CEO Reed Hastings announced that the platform will also offer a cheaper, ad-supported option to rake in additional revenue.