According to a report, the ad-supported tier could be less expensive than the standard plan.
The company is considering charging $7 to $9 per month for ad supported viewing. According to people familiar with the company's plans, four minutes of commercials per hour will be aired before and during programs but not after.
The Standard option is the most popular option. The basic plan costs $9.99 a month, and the premium tier costs $19.99.
Reed Hastings said in April that the company was considering an ad-supported plan after being ad-free for a long time.
He said at the time that he was against the complexity of advertising and a fan of the simplicity of subscription. Allowing consumers who would like to have a lower price and are advertising tolerant to get what they want makes a lot of sense.
In a New York Times interview in May, co-CEO Ted Sarandos talked more about the plan.
It was all about simplicity of one product, one price point. I believe it can now handle some complexity.
It was a critical time for the company. The company lost subscribers for the first time in over a decade.
The company did not respond to the request for comment.