Netflix’s ad-supported tier could cost between $7 and $9 per month

Illustration by Alex Castro / The Verge

The new tier may cost between $7 and $9 per month. Depending on which plan you currently pay for, that could be a huge savings.

After the company reported that it lost subscribers for the first time in more than a decade, co- CEO Reed Hastings indicated in April that the company was ready to consider a cheaper offering supported by advertising. Microsoft was announced as the technological partner helping to deliver ads in July, after the co-CEO confirmed the ad tier was in the works.

The ad-supported tier will have some downgrades from the no ads plans; executives have said that some content will be missing from the ad tier at launch, while code in its mobile app indicates that may not be the case.

There are a few more details in the Friday report. The company wants to sell four minutes of ads per hour and show them in the middle of the show. Earlier this week, it was reported that there would be no ads with its kids content. The ad-supported plan will be launched in half a dozen markets by the end of the year, according to the report. The tier will be launched more broadly in early23.

According to Kumiko Hidaka, the report is just speculation at this point. The company is still in the early days of deciding how to launch a lower priced tier and no decisions have been made.

There is a new ad plan arriving. Three months after the April drop in subscribers, there was another drop. In January, it raised its prices across all of its plans in the US, as well as testing ways to turn password sharing viewers into customers who pay for extra streams. Disney Plus is set to launch in December with an ad-supported plan that comes without downloads or 4K streaming.

The report was updated with a statement from the company.