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Netflix Mulling $7 to $9 Monthly Price for Ad-Supported Tier, Report Says

That would be about half the cost of its most popular ad-free offering.

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Sarah Tew/CNET

Streaming service Netflix is thinking about pricing its new ad-supported subscription tier at $7 to $9 per month, according to a report. That would be around half the price of its most-popular ad-free plan, which goes for $15.50 a month.

As Netflix gets ready to introduce advertising for the first time, it's being cautious about striking the right balance between attracting budget-minded viewers and offering a non-jarring experience, Bloomberg reported Friday.

The company is planning to sell approximately four minutes of ads per hour for the new tier and will show ads during and before some programs, but not after, Bloomberg said, citing unnamed sources familiar with Netflix's plans.

Netflix didn't immediately provide a comment to CNET.

Read more: Best Streaming Service of 2022: Netflix, HBO Max, Disney Plus and More

Ads won't be shown during children's shows, Bloomberg reported earlier, and subscribers reportedly won't be able to download content for offline viewing.

Netflix's new ad-supported tier could begin rolling out in at least six markets during the last three months of this year, Bloomberg said Friday, with a full launch possibly coming in early 2023. Plans could change, however.

This past April, when Netflix reported its first subscriber loss in a decade, co-CEO Reed Hastings reversed years of dismissing any interest in advertising by revealing the company was looking at a cheaper, ad-supported option. The company is also planning to start charging for password sharing, next year.

Rival streaming services Hulu and Disney Plus have also recently announced new ad-supported offerings as part of their lineup.