Netflix will roll out a new subscription option subsidized by advertisements in November, starting with a dozen countries as it aims to attract more users and boost revenues.
The new subscription, named “Basic with Ads”, will cost $6.99 in the United States, three dollars less than the usual basic option without ads in the country.
The ad-supported subscription Basic with Ads is a first for Netflix and it shall roll out in the following countries: Australia, Brazil, Britain, Canada, France, Germany, Italy, Japan, South Korea, Mexico, Spain and the United States. It is indeed a very big change for the company, which actually pioneered the concept of ad-free subscription-based streaming.
This comes as the streaming giant attempts to make a comeback after losing almost a million subscribers during the 3-month period ending June 30, marking the largest-ever quarterly loss in subscribers.
Basic with Ads
Aside from having, for the first time, third-party advertisements, Netflix’s subscription plan shall have its video quality locked in on 720p while airing an average of 4 to 5 minutes of ads per hour.
Also, Netflix explained that a “limited” number of shows will not be available in this specific tier because of licensing restrictions, which the company promises they are working on it to sort things out. Subscribers will also not be able to download any film or TV series titles. At launch, the ads would be around 15 or 30 seconds in length each, which will play before and during films and shows.
Basic with Ads complements Netflix’s existing ad-free Basic, Standard and Premium plans.