Netflix With Ads Will Cost $7 Per Month; Will Launch in November

Netflix will launch its cheaper ad-supported tier next month, at a price point that’s less than half the cost of its standard plan.

Netflix with ads will cost $6.99 per month in the U.S., and will launch in 12 countries beginning in November, the company said Thursday. The new plan, officially called “Basic With Ads,” will complement its existing ad-free plans: Basic ($9.99 per month), Standard ($15.49), and Premium ($19.99). Other countries will have local pricing, all at effectively the same price point.

“We believe that with this launch we will be able to provide a plan and a price for every Netflix fan,” Netflix COO Greg Peters told reporters at a virtual press conference 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 plans].”

Netflix says that the service will have between 4 and 5 minutes of ads per hour (using 15- and 30-second commercial spots), including preroll ads and commercials within its TV shows and movies. Unlike the other tiers, the ad-supported tier will not allow users to download TV shows or movies. Some titles will not be available at launch due to licensing issues.

There will also be different approaches for different formats. Movies, for example, will get a slightly different experience. “The new movies will just have a preroll, so we will try to preserve that cinematic model there,” Peters said, adding that older films may have some limited ads during the film.

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