Inside Netflix’s new CHEAPEST plan, showing you ads to cut bills

NETFLIX has announced plans to partner with Microsoft to offer a CHEAP new membership plan.

The new “cheapest ever” tier would cut your monthly bills – but you have to watch ads to get them.

Netflix doesn't show ads in the app yet - so Microsoft is on board to help


Netflix doesn’t show ads in the app yet – so Microsoft is on board to helpPhoto credit: Netflix

An ad-supported subscription was already teased by Netflix 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’s partnered with Microsoft to help the app serve ads for the first time.

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“Microsoft has the proven ability to support all of our advertising needs as we work together to build a new ad-supported offering,” said Greg Peters, Netflix’s chief of operations.

“More importantly, Microsoft offered the flexibility to innovate over time on both the technology and distribution sides, as well as strong privacy protection for our members.”

Competing services already offer similar plans.

US Netflix competitor HBO Max charges its customers $15 a month – or $10 with advertising.

Netflix lost more subscribers than it gained earlier this year for the first time in a decade, so it’s now under pressure to gain more viewers.

“Every major streaming company besides Apple has or has announced an ad-supported service,” Netflix is ​​quoted as saying.

“People want cheaper options for good reason.”

Netflix has already announced plans to crack down on users who share accounts.

It is estimated that 100 million households share subscriptions – a huge chunk of its 222 million member base.

Netflix has already started testing fees in some areas.

And it’s got fans going wild, with some viewers vowing to cancel their membership entirely.

The “Standard” Netflix plan currently costs £10.99 in the UK and $15.49 per month in the US.

But industry insiders agree The sun in April, they predicted a cheaper plan could cost 50% less.

“Undoubtedly, it needs to be low enough to get users to subscribe and keep them engaged,” said Paolo Pescatore, a veteran media analyst at PP Foresight.

“Therefore somewhere between 25% and 50% less than what they pay today.

Paolo told The Sun: “It remains to be seen if it carries over to all current tiers or this becomes the cheapest base tier to get people to sign up.

“Then if they want a premium experience, they can pay more for it.”

We also spoke to industry analyst titan Michael Pachter, who agreed that a halved fee was on the horizon.

“Most services that offer ad support charge half that, so $7.99 is likely,” Wedbush Securities’ Pachter told The Sun.

“But Netflix might advertise a little less and charge a little more.

“So I would estimate between $7.99 and $9.99.”

He added, “With four 2-minute commercial breaks – one pre-roll and three more at the 12, 24 and 36 minute marks.”

Netflix does not currently show advertising before, during, or after TV shows or movies.

But the price has steadily increased over the years, with the top plan now costing £15.99 / $19.99.

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