Netflix's ad-supported tier might cost less than half of the current 'Standard' subscription later this year.
Bloomberg reports that the new tier would cost between $7 and $9 per month, compared to $9.99 for the 'Basic' subscription and $15.49 for the most popular HD-inclusive 'Standard' package in the US.
In the UK and Australia, monthly fees might be roughly £4.99 and AU$8.99, as the lowest ('Basic') tier is £5.99 and AU$10.99.
Bloomberg sources ("people familiar with the company's intentions") predict about four minutes of ads each watching hour for the new low tier, before and during programming but not after.
The ad tier isn't always the 'Standard' tier with ads added. The new entry-level tier may have a restricted content selection and not enable offline watching, making for a stripped-down experience.
Netflix will aim to make this ad-supported alternative as enticing as possible for cost-conscious users, even if it just undercuts the 'Basic' subscription by a few dollars/pounds.