Netflix formally announced Thursday its forthcoming Basic with Ads service tier offering subscribers a lower-priced service option with ad-supported streaming.
The new Basic with Ads plan will launch in the United States on November 3rd at 9 am PT for $6.99 per month (streaming service’s lowest price to date). Eleven other countries will also get the option, starting between Nov. 1-10th depending on the country.
Tier subs will get most of the same Netflix content options as other tiers but limited to up to 720p HD resolution (similar to the Basic plan now). However, a handful of licensed movies and TV shows won’t be available on the tier due to licensing restrictions, Netflix said, adding that its working on that.
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Basic with Ads subs also will get only 1 simultaneous stream, and will not be able to download titles.
The company said programming on the tier will insert an average of 4 to 5 minutes of ads per hour.
Netflix, which has seen a drop-off in subscriber growth in recent months, is trying to make its service more affordable to a wider audience. Options now include a choice of tiers also including an ad-free Basic plan, a Standard plan and a Premium plan.
“We’re confident that with Netflix starting at $6.99 a month, we now have a price and plan for every fan. 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. As we learn from and improve the experience, we expect to launch in more countries over time,” stated Greg Peters, Netflix Chief Product Officer and COO.
Basic with Ads also will be available in Australia, Brazil, Canada (starting Nov. 1), France, Germany, Italy, Japan, Korea, Mexico (starting Nov. 1), Spain (starting Nov. 10), and the UK, the company said.
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By Greg Tarr
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