Netflix to launch a $7 ad-supported plan in November

The rising price of a Netflix subscription in recent years has led to complaints and even lawsuits from customers, and a loss of growth for the popular streaming service. In April, the company announced a remedy: an ad-supported subscription tier, similar to those offered by competitors like Hulu, HBO Max and Paramount+. It looks like that level will be releasing for Netflix in a matter of weeks and it will cost $6.99 per month.

Netflix announced yesterday that the Basic plan with ads will launch on November 3 at 12:00pm ET in the US. Current UK plans and memberships will not change, so the Basic, Standard and Netflix’s existing ad-free premium are still options.

How will the level with Netflix advertising?

The new plan offers HD video quality up to 720p, just like the Basic plan, and will include an average of 4-5 minutes of ads per hour, according to the company. The ads will be 15-30 seconds each and will play before and during the content, but not after. Netflix has also confirmed that ads won’t play during many kids’ shows, and will also hold back from putting ads in new movies for now.

Ad-supported Basic tier members also won’t have the ability to download titles for offline viewing, and may also have access to fewer movies and TV shows, due to licensing restrictions, but Netflix says it’s working to remedy that.

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The move is a major change for Netflix. Although people have been asking for a cheaper ad-supported option for years, co-CEO Reed Hastings said in 2017 that his company was not ready to compete with the big players in the ad-supported market, such as Facebook and Google. However, as the industry has matured, it has changed its mind.

“Those who have followed Netflix know that I have been against the complexity of advertising and am a big fan of the simplicity of subscription,” Hastings said, according to TechCrunch. “But as much of a fan of that as I am, I’m a bigger fan of consumer choice.”

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The moment is at its point. Netflix reported a loss of 200,000 subscribers for the first quarter of 2022, its first significant loss in more than a decade. Then in July, it reported another subscriber loss of 970,000, while gaining around 220 million subscribers overall.

Right now, Netflix’s basic plan currently costs $9.99 and allows only one user at a time. The Standard plan costs $15.49 and allows two users to stream at once, while the $19.99 Premium tier allows four at a time. Unfortunately, the company no longer offers a 30-day free trial to new users, so if you’re interested in trying it out, the new ad-supported tier might be the best entry point.

This story originally appeared on Don’t Waste Your Money. Visit Don’t Waste Your Money for product reviews and other great ideas to save and make money.

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