Everything You Need to Know About Netflix’s Ad-Supported Tier

After much anticipation, Netflix announced on Thursday that its new service will be available in the U.S. starting Nov. 3.

Everything You Need to Know About Netflix's Ad-Supported Tier

Netflix will now be more affordable.

On Thursday, the company released a statement that includes new details about its upcoming advertising-supported tier, titled “Basic with Ads.”

Netflix Co-CEO Ted Sarandos previously announced during a panel at the Cannes Lions festival that the company was adding an ad tier for customers who believe that Netflix is “too expensive” and “don’t mind advertising.”

The new “Basic with Ads” tier is set to launch on Nov. 3 at 12 p.m. ET, and will cost $6.99 per month.

“In short, ‘Basic with Ads’ is everything people love about Netflix, at a lower price, with a few ads in-between,” the company’s COO/CPO Greg Peters says in the statement.

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Everything You Need to Know About Netflix's Ad-Supported Tier

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The upcoming launch comes after Netflix lost 200,000 subscribers in its first quarter of 2022, according to its April earnings release, per multiple reports including The Hollywood Reporter and Variety.

According to the statement, users of the new plan will be met with ads that will be 15 or 30 seconds in length and will play before and during Netflix’s content. Users of the streaming service’s new plan are expected to experience 4 to 5 minutes of commercials each hour.

In its announcement, Netflix specified that a limited number of TV series and movies will initially be unavailable due to restrictions on licensing. While users of the new “Basic with Ads” plan will have video quality up to 720p/HD, similar to the current “Basic” plan, users of the new tier will lose the ability to download movies and TV series.

Subscriptions without advertisements will remain for customers who are willing to pay higher prices.

“We’re confident that with Netflix starting at $6.99 a month, we now have a price and plan for every fan,” Peters says in the statement.

Sarandos previously explained in a call reported by Deadline that “the vast majority of what people watch on Netflix” can be included in the ad-supported tier.

Before the new announcement, Sarandos also expressed that Netflix-created entertainment — from Stranger Things to Squid Game — will remain available for viewers paying the lower subscription price.

When compared to its competitors, Netflix’s new tier comes at a price that is less expensive then the ad-supported Disney+ and Hulu platforms.

Both services are individually priced at $7.99 per month.

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