Ad-Based Netflix Tier Launches Nov. 3 for $6.99 Per Month

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(Opens in a new window) 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. 

(Credit: Netflix)

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(Opens in a new window) 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.