UPDATE 11/3: Netflix's ad-supported tier is now rolling out. On the sign-up page, you can select the $6.99-per-month Basic with ads plan, which offers 720p video but no offline downloads and limits on some content. One thing to note: The Basic with ads plan doesn't currently support Apple TV, though Netflix tells 9to5Mac that it will roll out soon.
If you're an existing Netflix subscriber who wants to downgrade to the Basic with ads plan, navigate to Account > Change plan and select Basic with ads.
Original Story 10/13:
Netflix’s ad-based subscription plan launches on Nov. 3 for $6.99 per month, or $3 cheaper than the streaming service’s cheapest ad-free plan.
The company is naming the ad-based tier “Basic with Ads.” It’ll join Netflix’s three other service options: the $9.99-per-month Basic plan, the $15.49 Standard tier, and the $19.99 Premium plan, which all saw a price hike back in January.
Netflix says the new ad-based tier offers all the features of the Basic plan, but subscribers will encounter an “average of 4 to 5 minutes of ads per hour.” Netflix added: “At launch, ads will be 15 or 30 seconds in length, which will play before and during shows and films.”
In addition, “a limited number of movies and TV shows won't be available due to licensing restrictions,” the company said. The Basic with Ads plan also removes the ability to download TV shows and movies for offline viewing.
However, the company is upgrading the video content for both the Basic with Ads and the Basic plan to a “720p/HD” video quality, an improvement from the 480p Standard Definition.
The company is introducing the ad-supported plan in an effort to attract more paying users, and generate more revenue when its growth has stalled. At the same time, Netflix is also preparing to crack down on password-sharing users.
The Basic with Ads plan costs the same as Hulu’s ad-supported plan. It’ll also have to compete with Disney+, which is also working on its own ad-based tier slated to launch in December at $7.99 per month.
“We’re confident that with Netflix starting at $6.99 a month, we now have a price and plan for every fan,” the streaming provider added. “While it’s still very early days, we’re pleased with the interest from both consumers and the advertising community — and couldn’t be more excited about what’s ahead.”
Netflix’s ad-based tier is launching in the US and 11 other countries, including the UK, Mexico, and Canada. Interested users will be able to sign up for the Basic with Ads plan starting on Nov. 3 at 9 a.m. PT through Netflix.com.