The cheap new Netflix plan “is just £5.49 a month,” insiders reveal

A CHEAP new Netflix plan could cost as little as £5.49 a month.

Netflix has teased an ad-supported subscription – and insiders have told The Sun your bills could be cut in half.

2

2

Streaming boss Reed Hastings revealed it was him open to a cheaper Netflix subscription earlier this week.

It came after Netflix admitted it had lost subscribers for the first time in over a decade.

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

But industry insiders speaking to The Sun say they predict 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 will carry over to all current tiers or this will become the cheapest base tier to get people to sign up.

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

The price is correct

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.”

Ad-solutely golden

A third insider — GlobalData’s Tammy Parker — thought Netflix could drop to about $10 a month in the US thanks to a $5 rebate.

“HBO Max is offering a $5 monthly discount for its ad-supported version,” Tammy told The Sun.

“So I would imagine Netflix would follow suit with that kind of discount as it moves forward with an ad-supported tier.”

However, the tech analyst added that Netflix could try to make its ads “less intrusive than other services.”

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

but the price has steadily increased Over the years, the top plan is now £15.99 / $19.99.

Speaking to investors this week, Netflix admitted it was losing subscribers for the first time in 10 years.

It revealed how 200,000 subscribers had abandoned the app – and that another 2 million viewers could disappear by July.

Speaking to investors, Netflix CEO Reed Hastings admitted that a cheaper, ad-supported plan was on the table.

He told investors they would work it out “in the next year or two.”

And said the new plan would be great for viewers who “would like to see a lower price point and are ad-tolerant.”

Netflix also believes there are up to 100 million homes share subscriptions now.

That’s a huge chunk of the 222 million total subscribers.

Netflix plans now a crackdown on users who share their logins.

• Read the latest phone and gadget news
• Stay up to date on Apple stories
• Get the latest on Facebook, WhatsApp and Instagram

We pay for your stories! Do you have a story for The Sun Online Tech & Science Team? Email us at tech@the-sun.co.uk