Netflix’s upcoming ad-supported plan could cost anywhere from $7 to $9 per month according to a Bloomberg report published over the weekend. For comparison, the streaming service offers a basic single-screen plan in the U.S. for $9.99 per month, while its most popular plan, which offers full HD streaming on two screens, costs $15.99 per month.

The report by Bloomberg acknowledged that Netflix has indicated it intends to display about four minutes of commercials per hour of programming, which is either the same or less than its competitors. Moreover, Bloomberg said the company will still be displaying ads preceding and during a show but will not display anything after an episode has ended.

In April, the streaming giant said it plans to offer its ad-supported plan next year. However since then, multiple reports have remarked that the firm might launch this plan by the end of the year. The new report says Netflix might launch its ad-fueled tier in at least half a dozen markets in the last quarter of the calendar year.

In its recent earnings call, Netflix confirmed that users subscribing to the ad-supported plan wouldn't have access to its whole catalog initially; this is because of its licensing deal with different studios. Recent reports have also revealed that Netflix might now allow offline viewing in its upcoming plan. Last month, the streaming company announced that it's partnering with Microsoft for ad sales for the upcoming plan.

What's more, a report last week from Bloomberg suggested that even on the ad-supported plan, Netflix may not run ads on the kids' content. It even reported that the company might not show ads on its original movie programming at first.
The company has attempted to win more users by experimenting with cheaper plans such as mobile-only plans available in India, Malaysia, Nigeria, Kenya and South Africa. But the ad-supported plan may be rolled out worldwide after the full launch. According to the projections, ads on Netflix will collect $8.5 billion by 2027. According to the study published by Digital TV Research in May, the global AVOD market is expected to reach $70 billion by 2027. AVOD in the United States is likely to account for a third of the amount, $31 billion.

Netflix is hardly alone in seeking to build audience by relying on an ad-supported plan. In March, Disney+ confirmed that it is planning to introduce a similar tier by the end of the year. Earlier this month, the company confirmed the launch for December with $7.99 per month pricing. During its earnings call for Q2 2022, Warner Bros. Discovery also said it's exploring an ad-fueled plan for the new service — slotted to launch in 2023 — created by the merger of HBO Max and Discovery+.