The streaming industry is entering a new phase of competition as the major platforms roll out ad-supported subscription tiers at significantly reduced prices.
Netflix's new tier, priced at $6.99 per month, launched this week to strong initial subscriber numbers, according to people familiar with the matter.
Disney+ and HBO Max have introduced similar options in recent months, acknowledging that many consumers are looking for more affordable entertainment choices.
The shift toward ad-supported streaming represents a significant change in strategy for platforms that initially positioned themselves as premium, ad-free alternatives to traditional television.
Industry analysts estimate that the ad-supported tiers could generate more than $10 billion in advertising revenue across the major platforms within the next two years.
