Netflix With Ads Launches November 3 With Limited Features And Missing Titles

There will be 4-5 minutes of ads per hour on the new tier, which is called Basic with Ads.

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Netflix has announced key details for its new ad-supported tier, including its name, price, release date, and limitations. The new tier is called Basic with Ads, and it costs $7/month. Existing plans are unaffected, and the new ad-based tier is meant to be a complementary offering for people who want to subscribe at a lower cost.

The Basic with Ads tier launches in the US (and 11 other countries like the UK, Mexica, Australia, and Canada) on November 3 at 9 AM PT / 12 PM ET. Those who subscribe to the Basic with Ads tier will have their video quality limited to 720p, and they will see an average of 4-5 minutes of ads per hour. Additionally, some TV shows and movies will not be available with Basic with Ads due to "licensing restrictions." Netflix did not name the missing titles, but said it is working with providers to add more content over time. Finally, Basic with Ads members cannot download titles.

Netflix's ads will play during programming, which is also how it works on Peacock, HBO Max, and others. The ads on Netflix will be 15 or 30 seconds in length, and Netflix said advertisers can choose to target audiences by country and genre. Advertisers can also prevent ads for appearing on "content that might be inconsistent with their brand," Netflix said.

Basic with Ads members can watch content on one device at a time and they also have access to Netflix's growing catalog of mobile games.

A chart posted on Netflix's website provides a breakdown of the company's various plans, including Basic with Ads ($7/month), Basic ($10/month), Standard ($15.50/month), and Premium ($20/month).

A breakdown of Netflix's subscription plans
A breakdown of Netflix's subscription plans

Netflix announced the new ad-based tier in wake of shrinking subscriber numbers. The idea is to encourage people to come back--or new subscribers to sign up--for a lower cost in exchange for being served ads. According to Ampere Analytics, Netflix's new ad-based tier could bring in $8.5 billion a year by 2027 through subscription fees and ad revenue.

Disney Plus is rolling out its own ad-based tier in December at the same time it's raising prices across the board.

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