Netflix has confirmed that its ad-supported plan will launch next month and will cost $6.99 per month in the United States. While there had been rumors for some time that Netflix may introduce a ‘with ads’ plan, the company only recently confirmed it was working on an ad-supported tier. Today, Netflix also confirmed most of the finer details consumers will need to know.
Netflix may be one of the most popular streaming services, but it is increasingly becoming one of the most expensive as well, at least in the US. The cheapest Netflix plan now costs $9.99 per month with the price increasing up to $19.99 per month for those that want to stream in 4K and/or on more than two devices at the same time.
An ad-supported plan is expected to help compensate for those rising Netflix costs by using the revenue generated from ads to lower the monthly cost a consumer pays. Speaking of which, Netflix has now confirmed that its new Basic with Ads plan will be priced at $6.99 in the US, making it $3 cheaper than the current cheapest plan. Netflix’s new Basic with Ads plan is due to go live in the US on November 3 at 9 am PT.
In terms of what consumers can expect with the ad-supported plan, Netflix says 4 to 5 minutes of ads will be shown each hour on average. In addition, each ad will run for 15 or 30 seconds, and ads will be shown before and during videos. While ads will be targeted, Netflix explains that “basic demographic data” (date of birth and gender) and “general location information” (IP address) are what will be used for ad targeting.
Otherwise, Netflix says that the Basic with Ads plan will be more or less the same as the current Basic plan. In other words, the video quality is limited to 720p and there won’t be an option to download videos to watch offline. In a separate support document, Netflix also confirmed that Basic with Ads subscribers will only be able to stream on one device at a time. Notably, Netflix has warned that, due to licensing restrictions, some movies and TV shows won’t be available with the Basic with Ads plan.
In general, ad-supported versions have proven popular and especially in recent months and years. With so many services to now choose from, consumers are feeling the collective cost of streaming and ad-supported tiers provide a way to access the same services at a cheaper price. Of course, not everyone likes ads and that’s where the ad-free options come in. The launch of the $6.99/mo. Basic with Ads plan will simply be another option for consumers to consider, alongside Netflix’s $9.99/mo. Basic, $15.49/mo. Standard and $19.99/mo Premium ad-free plans