The day has come, with Netflix set to officially introduce ads to the platform very soon. Six months ago the streamer announced the lower-priced ad-supported plan, and has now announced the plan will be available for U.S. consumers on November 3. This plan will cost $6.99 a month in the United States, and will also be available in 12 other countries.
The streaming service's announcement notes that their current streaming plans will not be impacted by this. What this means is there will be four pricing plans available for those looking for a Netflix subscription. Here’s what you can expect with Netflix’s new tier:
When Netflix's Ad-Supported Plan Is Going Live
The world of streaming has been evolving over the last year, with streamers like Netflix and Disney+ announcing ad-supported plans. Netflix announced a few months ago that it would be introducing an ad-based tier, called Basic with Ads, to the service, now we know it will be available on November 3 at 6 a.m. PT in the United States.
The ad-tier plan will also be available in 12 countries. This includes the UK, Spain, Mexico, Korea, Japan, Australia, Brazil, Canada, France, Germany, and Italy.
How Much Netflix's Ad Subscription Will Cost
This new ad plan will cost $6.99 and will be the cheapest of Netflix’s various tiers. The other three tiers include Basic at $9.99 a month, Standard at $15.49 per month, and Premium at $19.99 per month.
With the ad plan, there will be 15 to 30-second commercials that will play during shows, according to the press release. The ads will play before and during movies and shows and people can expect four to five minutes of ads per hour.
The press release noted that the video quality for this plan and the Basic plan will be 720p/HD. Also, with the ad-supported plan, there will be a few movies and shows that will not be available due to licensing restrictions.
The plan is similar to the basic plan in that users get one supported device at a time, and they can watch in HD. The big differences are the ads, limited selection and users will not be able to download content.
One of the big reasons Netflix was able to add an ad plan is because of its partnership with Microsoft. By doing this Netflix joins quite a few other platforms that use ad-based plans. Hulu has used commercials for a long time now, and HBO Max made the move in 2021.
This announcement comes one day after it was announced that the four top streaming services: Netflix, Amazon Prime, Hulu and Disney+ all had a “penetration rate (the number of subscribers divided by the size of the available market)” that remained flat through the third quarter, according to Indie Wire. It’s also known that Netflix has been losing subscribers throughout the year. Indie Wire reported the streamer lost 200,000 subscribers during Q1 this year. However, Netflix has also had big success this year with the release of Season 4 of Stranger Things, as well as other shows.
As Netflix works to retain and gain subscribers, this cheaper ad tier could offer users a more affordable option that will keep them with the service.
