Netflix will reportedly make its ad-supported tier available for subscribers in November, months ahead of its original early 2023 launch date.

According to Variety, Netflix has moved up the timeline to get its ad-supported tier out to the public before Disney+, which is set to add an ad-supported tier on Dec. 8. Netflix's ad-supported tier, initially targeted for an "early part of 2023" launch will now be rolled out in multiple countries, including U.S., Canada, U.K., France and Germany, on Nov. 1. Netflix has not responded to these latest reports and has stated that the company is "still in the early days of deciding how to launch a lower-priced, ad-supported tier and no decisions have been made."

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Netflix first announced an ad-supported tier in April 2022. In July, Netflix selected Microsoft to be its global advertising technology and sales partner, with reports indicating that they have requested potential ad buyers to submit initial bids by mid-August, with a "soft $65 CPM" (cost per thousand views), which is well above the current industry CPMs of sub-$20. On the cost, one ad buyer said, "My guess is they won’t get that" with another stating that when "anything [is] above $20 [CPM], the feeling is, 'Let’s let other advertisers wade into that pool first.'" The streamer reportedly wants to lock in ad buys by Sept. 30 to meet the Nov. 1 launch date. Additionally, Netflix has told ad buyers that it expects to have around 500 thousand customers on its ad-supported tier by the end of 2022.

The Streaming Wars Heat Up

Netflix moving up the launch date for its ad-supported tier is just the latest move in the "Streaming Wars," a term coined to discuss the competition between video streaming services. Netflix was once considered the king of streaming, but in recent months have struggled to add new subscribers and turn a profit. The streaming service also saw Disney surpass them to become the world's largest streaming company. Disney will launch its ad-supported tier for Disney+, titled Disney+ Basic, on Dec. 8 in the United States. It will cost $7.99/month and is expected to run four minutes of ads per hour, which will be broken up into 15- and 30-second spots. The current tier for Disney+, which currently carries the $7.99/month price tag, will be rebranded as Disney+ Premium and see its monthly price increase to $10.99.

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Netflix has not announced official pricing for its ad-supported tier, but the streaming service is aiming for a cost between $7 and $9 a month. Those who subscribe to the ad-supported tier will reportedly only receive four minutes of commercials per hour for any TV series they watch while movies will run with pre-roll ads. Netflix's ad-supported tier launches on Nov. 1.

Source: Variety