Consumers will soon be able to choose a cheaper subscription plan on Netflix, but it comes with a catch.
On Thursday, the streaming giant announced the new plan “Basic with Ads.”
According to Netflix, it will cost $6.99 a month and will become available on November 3.
It will be available in Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, Spain, the UK and the United States.
“Our current plans and members will not be impacted. Basic with Ads complements our existing ad-free Basic, Standard and Premium plans,” the company said.
Netflix explained the difference with the plan is there will be an “average of 4 to 5 minutes of ads per hour; a limited number of movies and TV shows won’t be available due to licensing restrictions, which we’re working on; no ability to download titles.”
The company claimed the plan “represents an exciting opportunity for advertisers — the chance to reach a diverse audience, including younger viewers who increasingly don’t watch linear TV, in a premium environment with a seamless, high-resolution ads experience.”
Enjoy your Netflix experience exactly as it is today? Great! Nothing about the way you watch Netflix is going to change.
— Netflix (@netflix) October 13, 2022
From November, Netflix will be available from $6.99 a month. Basic with Ads, Netflix’s new lower priced ad-supported plan. https://t.co/OjRfIkbXWs
During the beginning of the launch, the ads will run from 15 or 30 seconds.
They will play before and during programming.
“Basic with Ads will launch just six months after we first announced the option of a lower priced ads plan. None of this would have been possible without our team’s hard work or Microsoft’s extraordinary partnership,” Netflix said.
The company added, “The switch from linear is happening at an ever increasing speed, with streaming now surpassing broadcast and cable in the US. We’re confident that with Netflix starting at $6.99 a month, we now have a price and plan for every fan.”
Acknowledging it is “still very early days,” Netflix continued, “We’re pleased with the interest from both consumers and the advertising community — and couldn’t be more excited about what’s ahead. As we learn from and improve the experience, we expect to launch in more countries over time.”
