The price of Netflix dropped like a rock for those willing to watch commercials. The streaming service announced Thursday that its new ad-supported subscription plan is only $6.99 a month – 30% to 55% below the current cost.
The new option will debut in November 2022. It’ll then be a cheaper option for enjoying a large library of shows and movies on a Mac, iPad or Apple TV.
Netflix plan saves money, add commercials
Netflix is the 500-pound gorilla of the streaming market, and it comes with a premium price: up to $20 a month. But its subscriber total dropped earlier in 2022, and execs apparently think a lower-cost, ad-supported rate will bring a rush of fresh customers.
“Basic with Ads is everything people love about Netflix, at a lower price, with a few ads in-between,” promises Netflix.
As its name indicates, the new Basic with Ads plan is similar to the Basic plan, but with an average of 4 to 5 minutes of ads per hour. Commercials appear before and during shows and films.
It’s for only one screen, video resolution tops out at 720p, and subscribers cannot download movies or TV episodes to watch later.
Also, some content will be absent. “A limited number of movies and TV shows won’t be available due to licensing restrictions, which we’re working on,” warned Netflix.
Price comparison
As noted, Netflix’s Basic with Ads plan is $6.99 a month in the United States. It will also be available in Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, Spain and the UK.
For comparison, Netflix’s Basic plan lets subscribers watch 720p content on one screen for $10 per month, while the Standard plan with 1080p streaming runs $15.50 per month. A Premium plan with 4K streaming and the ability to watch content on up to four devices is $20 per month.
Adverts will not be inserted into any of the other pricing tiers. When Netflix co-CEO Ted Sarandos first announced that commercials were coming to the streaming service, he made it clear they will be an option not forced on all subscribers. “We’re adding an ad tier; we’re not adding ads to Netflix as you know it today,” Sarandos promised.
This company’s ad-supported plan is below the cost of the ad-supported plan that Disney+ will launch in December. Apple TV+ is also reportedly considering adding commercials, though the price is unknown at this time.
Source: Netflix
