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Netflix Eyes $7-to-$9 Price for Its New Ad-Supported Plan

  • Service targets about four minutes per hour of ads at first
  • Streaming giant won't put the commercials on after its shows
Netflix Illustrations Ahead Of Earnings Figures
Photographer: Gabby Jones/Bloomberg

Netflix Inc. is considering pricing its new advertising-supported tier at $7 to $9 a month, half as much as its current, most-popular plan, which costs $15.49 monthly with no commercials.

The goal is to attract subscribers who are willing to watch some ads in exchange for a lower monthly rate. As the streaming TV pioneer prepares to introduce advertising for the first time, it's trying to strike a careful balance between reaching a more cost-conscious consumer while still offering a pleasant experience.