The one about ads on Netflix

Netflix is considering pricing its ad-supported option in the range of $7 to $9 per month, roughly half as much as its most popular ad-free tier ($15.49), per a new report from Bloomberg’s Lucas Shaw.

📺 More deets… Netflix will reportedly include about four minutes of commercials per hour – less than Hulu (6 mins), Discovery+ (6) or HBO Max (5), and roughly in line with Peacock and the upcoming ad-supported tier of Disney+. For context, most broadcast TV networks average between 12 and 17 minutes per hour.

• Netflix also doesn’t plan to show any ads during kids content or original movies. Its ad-supported tier will be launched in “at least half a dozen markets” next quarter, per Bloomberg, with a more broad launch expected in early 2023.
• The new ad-supported tier could generate $8.5 billion/year globally for Netflix by 2027, per media analytics firm Ampere Analytics, which predicts some 20% of the company’s users will be on the ad tier by that time.

🤑 Zoom out: Here’s how Netflix’s reported pricing tier would rank among other streaming giants with ad-supported tiers:

• $9.99/month: HBO Max
• $7.99/month: Hulu, Disney+ (or $9.99 combined)
• $4.99/month: Discovery+, Peacock, Paramount+