NETFLIX has revealed plans to team up with Microsoft to offer a CHEAP new membership plan.
The new “cheapest-ever” tier would slash your monthly bills – but you’ll have to watch ads to get it.
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An ad-supported subscription was teased by Netflix back in April.
At the time, insiders told The Sun that it could cost as little as £5.49/$7.99 in the UK and US.
In May, a leaked memo suggested that Netflix was planning an October launch for the cheaper tier.
Now Netflix says it has teamed up with Microsoft to help the app deliver ads for the very first time.
“Microsoft has the proven ability to support all our advertising needs as we work together to build a new ad-supported offering,” said Netflix operations chief Greg Peters.
“More importantly, Microsoft offered the flexibility to innovate over time on both the technology and sales side, as well as strong privacy protections for our members.”
Rival services are already offering similar plans.
US Netflix competitor HBO Max charges customers $15 a month – or $10 with ads.
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Netflix lost subscribers more subscribers than it gained for the first time in a decade earlier this year, so it’s now under pressure to hook more viewers.
“Every major streaming company excluding Apple has or has announced an ad-supported service,” Netflix is quoted as saying.
“For good reason, people want lower-priced options.”
Netflix has already revealed plans to crack down on users sharing accounts.
It estimates that 100million homes are sharing subscriptions – a huge chunk of its 222million membership base.
Netflix has already begun testing charges in some areas.
And it’s left fans raging, with some viewers vowing to cancel their memberships completely.
The “Standard” Netflix plan currently costs £10.99 a month in the UK and $15.49 in the US.
But industry insiders speaking to The Sun in April said they predict a cheaper plan could cost 50% less.
“Undoubtedly it has to be low enough to attract users to sign up and keep them engaged,” said Paolo Pescatore, an expert media analyst at PP Foresight.
“Therefore, somewhere between 25% to 50% less than what they’re paying today.
Paolo told The Sun: “It remains to be seen whether it will be rolled across all current tiers, or this becomes the basic cheapest tier as a means to get folks signed up.
“Then if they want a premium experience, they can pay more for that.”
We also spoke to industry analyst titan Michael Pachter, who agreed that a halved fee was on the cards.
“Most services that offer ad support charge half, so $7.99 is likely,” said Pachter, of Wedbush Securities, speaking to The Sun.
“But Netflix may advertise a tad less and charge a tad more.
“So I would guess between $7.99 to $9.99.”
He added: “With four 2minute ad breaks – one pre-roll, and three more at the 12, 24, 36 minute marks.”
Netflix doesn’t currently show ads before, during or after TV shows or movies.
But the price has steadily climbed over the years, with the top plan now costing £15.99 / $19.99.
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This post first appeared on Thesun.co.uk
