What you need to know
- Netflix has launched its new ad-supported tier in select regions.
- The tier costs $6.99 per month and caps out at 720p streaming, with no downloads and some missing content.
- Ads will be 15 or 30 seconds in length and there will be 4 to 5 minutes of ads per hour.
Netflix has finally launched the "Basic with Ads" plan, its cheaper ad-supported tier that it hopes will entice customers back to the platform. The plan costs $6.99 per month in the U.S., is available in select countries, and has a few limitations.
Compared to Netflix's other plans, Basic with Ads is fairly similar to the Basic plan that costs just $3 more in the U.S. in that the resolution is capped at 720p, and it doesn't support simultaneous streams on different devices. However, the plan has additional limits, like the lack of downloads for offline viewing. A "limited number" of movies and shows will also not be available at launch due to licensing, but that's something Netflix is currently working to address.
Of course, the most significant difference here is the presence of ads. According to Netflix, ads will run for 15 or 30 seconds, and there will be an average of 4 to 5 minutes of ads per hour. The ads will play before and during movies and TV shows.
Introducing a cheaper, ad-supported plan is a move that more streaming services like HBO Max have adopted, with even Disney+ rolling out its own ad tier in early December. This comes as companies continue hitting consumers with price increases to offset rising costs. Netflix says that it hopes to "reach a diverse audience, including younger viewers who increasingly don't watch linear TV."
The new plan is available in 12 countries at launch, including the U.S., Canada, the U.K., Australia, France, Germany, Italy, Japan, Korea, Mexico, and Spain. Those interested in signing up can do so over at Netflix's website, and current subscribers can switch their plans if they so choose.
In early 2023, Netflix also plans to begin charging subscribers for "sub-accounts," or users that aren't in the account holder's household. In the meantime, the service has introduced a new way to easily transfer users to their own accounts.
