Wednesday, May 4, 2022

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

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

Netflix has teased an ad-supported subscription — and it could cut prices by up to half.

Streaming boss Reed Hastings announced earlier this week that he was open to a cheaper Netflix subscription.

It came after Netflix admitted it was losing 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 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.”

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, with the top plan now costing £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 is on the table.

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

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