One of the most popular streaming service platforms in the modern era, Netflix, has announced the addition of ads to its service.
This new option will become the fourth plan offered, joining its basic, standard, and premium plans, allowing users to access the platform at an affordable price to watch their favorite and popular shows such as Stranger Things, Squid Game, or the Crown.
Subscription prices vary, Basic: $9.99/month; Standard: $15.49/month; and Premium: $19.99/month, all of which are ad-free.
According to a statement from Netflix chief operating officer Greg Peters, a total average of four to five minutes of ads will now be spread out to viewers before and during their favorite programs each hour.
“Basic with Ads represents an exciting opportunity for advertisers — the chance to reach a diverse audience, including younger viewers who increasingly don’t watch linear TV, in a premium environment with a seamless, high-resolution ads experience,” said President of Advertising of Netflix, Jeremi Gorman, in a press conference.
The company also announced it would not accept any political advertisements.
Gorman declared Netflix would partner with Integral Ad Science and DoubleVerify to help ensure ads are delivered appropriately.
Another addition Netflix announced is that ad-supported subscribers will not be able to download shows and movies to watch when their devices are offline.
Similarly, a limited number of shows and movies on the three current subscription plans wouldn’t be available on ad-supported versions because of licensing restrictions.
The video quality offered is up to 720p/HD, which will be available for basic with ads and basic plans.
Since the beginning of 2022, subscriptions have been dropping steadily, and the ad-supported option is intended to reverse that.
Netflix reported that in the first quarter and the second quarter of 2022, it lost approximately 200,000 subscribers after raising monthly subscription prices in the U.S.
The price for Netflix‘s new advertising-supported tier will cost $6.99 a month, three dollars less than a no-ads basic option in the U.S. Every user has the option to change or cancel their plan at any time.
“We’re confident that with Netflix starting at $6.99 a month, we now have a price and plan for every fan,” according to a press release.
Other streaming services such as Hulu, Peacock, and HBO Max have already launched their own ad-subsidized subscription.
Disney+ is expected to launch its own ad-subsidized subscription in December, facing stiff competition from streaming rivals.
The ad-supported tier will be offered in 12 additional countries for $5.99, beginning with Canada, Mexico, Italy, Japan, Korea, Spain, the UK, and France Nov. 1, while it will become available in the U.S. at 9 a.m. PT., Nov. 3.
Eduardo A. Flores is a contributor and may be reached at [email protected]; @eduardo_aa_flores on Instagram; @floreseduardo on Twitter.