Netflix will launch its new “Basic with Ads” subscription tier next month for a price that is less than half that of the platform’s standard service.
The new cheaper ad-supported tier will cost $6.99 USD per month in the U.S., and will initially launch in 12 countries starting in November, the streaming giant announced on Thursday. Canada and Mexico will receive access on November 1, and two days later, the new plan will be available in the U.S., Australia, Brazil, France, Germany, Italy, Japan, Korea and the U.K. Spain will follow on November 10.
“We believe that with this launch we will be able to provide a plan and a price for every Netflix fan,” said Netflix COO Greg Peters in a press conference on Thursday. “The most important thing for us is that we want to offer consumers choice and for them to figure out what is the best offering for them, and that could mean that some of our existing members shift off [of ad-free subscriptions].”
Netflix disclosed that the soon-to-launch plan will include between four to five minutes of ads per hour, with 15 and 30-second commercial slots. Unlike other plans, Basic with Ads will not allow users to download content. Notably, movies arriving on the streaming service will “just have a pre-roll” as the company tries to “preserve that cinematic model”; but older films will receive a more “traditional” mix of pre-roll and mid-roll advertisements.
Netflix’s Basic with Ads subscription tier joins the company’s existing ad-free plans, which include Basic ($9.99 USD per month), Standard ($15.49 USD per month) and Premium ($19.99 USD per month).
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Tagged: ENTERTAINMENT