Netflix’s new ad-supported plan will be rolled out in November for $6.99 a month

Netflix will roll out ad subscription service with 30-SECOND breaks for films and series for $6.99-a-month on November 3: Stocks fall 63% in a year

  • Netflix will charge $6.99 for their new ‘Basic with Ads’ plan due out in November
  • Subscribers will see roughly four to five minutes of advertising per hour
  • The cost of the plan is $3 less than Netflix’s lowest-priced tier without ads
  • The new option will be available in 12 countries including the United States, Britain, Brazil, France, Germany, Japan and Korea 
  • A ‘limited number’ of movies and TV shows will not be available on the ad-supported plan because of licensing restrictions

Netflix will be rolling out a cheaper plan in an effort to attract new subscribers after the company lost thousands of customers in the first half of the year.

But subscribers to the $6.99-a-month plan will have to endure roughly four to five minutes of advertising per hour.

The streaming giant is set to launch the new option ‘Basic with Ads’ on November 3 at a price that is $3 less than its lowest-priced tier without commercials.

Industry insiders suspected Netflix wanted to introduce ads before streaming rival Disney+ releases its own ad-supported tier on December 8.

Since its inception 15 years ago, Netflix has refused to include commercials in any of its offerings, but that has all changed after it lost 200,000 subscribers globally during the first three months of the year and 970,000 from April to June. 

The Basic with Ads plan will cost $6.99 a month and will launch on November 3

The Basic with Ads plan will cost $6.99 a month and will launch on November 3

Netflix, known for hits such as ‘Stranger Things’ and ‘Squid Game,’ reported 220.7 million paying subscribers as of June, down nearly 1.2 million from the start of the year.

In July, Netflix announced that it had lost nearly 1 million subscribers in the second quarter of the year – almost five times the amount lost in the first quarter. 

Netflix is scheduled to release third quarter earnings on October 18, and the company has projected it would add 1 million customers.

The streaming platform currently has three subscription tiers – Basic, Standard and Premium – none of which have ads.

At $6.99 per month, Basic with ads is $3 cheaper than the lowest-priced ad-free tier (Basic), which costs $9.99 a month. And it is $13 cheaper than Netflix’s Premium package.

Netflix added 8.3 million new subscribers in Q4 2021. But in the two successive quarters it lost 200,000 subscribers, not gained them

Netflix added 8.3 million new subscribers in Q4 2021. But in the two successive quarters it lost 200,000 subscribers, not gained them 

With the new plan, there will be ads with each lasting about 15 or 30 seconds in length, according to Netflix, with some played before the content is streamed and some even played during.

A ‘limited number’ of movies and TV shows will not be available on the ad-supported plan because of licensing restrictions, ‘which we’re working on,’ it added. 

NETFLIX PRICES

  • Basic with Ads: $6.99 (available November 2022)
  • Basic: $9.99 (one device at a time) (one device at a time)
  • Standard: $15.49 (two devices at a time)
  • Premium: $19.99 (four devices at a time)

Plans and Pricing info: Netflix.com

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The ads could infuriate viewers if they interrupt a particularly dramatic or suspenseful moment of their shows, including in its flagship sci-fi drama Stranger Things and its most recent thriller hit Dahmer – Monster: The Jeffrey Dahmer Story.

However, the streaming giant said none of the tiers will change due to the launch of the new ad-supported tier, which is launching in 12 different countries from next month, including the UK and the US. 

The new option will be available in 12 countries including the United States, Britain, Brazil, France, Germany, Japan and Korea, the company said in a statement.

Netflix had originally said it would launch adverts in 2023, but it’s brought the launch date forward, allegedly due to dwindling subscriber numbers. 

Industry insiders suspected Netflix wanted to introduce ads before streaming rival Disney+ releases its own ad-supported tier in the US on December 8. 

Other streaming services including Hulu, Disney+ and HBO Max have cheaper, ad-supported options or will offer them soon. 

A lot of the details about Netflix’s new tier have been revealed before today’s official announcement – including the restriction on downloads and a reduction on the amount of content available

Netflix also previously revealed it’s been working with Microsoft, its ‘technology and sales partner’, on implementing the new tier. 

Netflix said ads will be targeted by country and genre, such as action, drama, romance and sci-fi, to ‘help advertisers reach the right audience’. 

Of course, we've always been fascinated by horror. We cannot help but be drawn in by the psychology ¿ why he was what he was and why he did what he did.

‘Monster: The Jeffrey Dahmer Story’ became Netflix’s most-watch series in one-week of airing

The 10-episode series beat out 'Squid Game' (pictured) after it amassed half-billion views

The 10-episode series beat out ‘Squid Game’ (pictured) after it amassed half-billion views

Pictured: The Netflix series 'Bridgerton.' 'Monster' is now the platform's ninth most popular English-language TV series of all time

Pictured: The Netflix series ‘Bridgerton.’ ‘Monster’ is now the platform’s ninth most popular English-language TV series of all time

Netflix lost 970,000 subscribers from April through June in a sign that the world’s dominant streaming service was cracking under unruly inflation, the Ukraine war and fierce competition. 

That prompted the company to announce plans for a cheaper, ad-supported subscription option next year, as well as carry out job cuts.

Netflix said last month it had cut 30 jobs in its animation unit. The company had let go of 300 employees, or 4 percent of its workforce, in June.

It comes on the heels of a subscription policy rollout in Latin America intended to test strategies for cracking down on password sharing, which Netflix has fingered as a primary cause for its plummeting numbers.

Netflix paid subscriber growth, showing a drop-off from 2020 to the first two quarters of 2021

Netflix paid subscriber growth, showing a drop-off from 2020 to the first two quarters of 2021

The streaming service have asked subscribers in five Latin American countries to pay an additional fee if they are consistently using the platform in a different household.

Users in El Salvador, Guatemala, Honduras, the Dominican Republic, and Argentina will receive a notification on their account if it has been used for more than two weeks outside of their primary residence. 

They are having to fork over an additional $2.99 ($1.70 in Argentina) on top of their regular subscription for the ability to continue watching at that different location.

The company has said that password sharing has been a particular problem in Latin America, and previously introduced measures to curb it in March by asking users in Costa Rica, Chile, and Peru to add additional users.

The news came after Netflix’s devastating first quarter, which saw the company shed record numbers of subscribers and an overnight loss of $50billion in valuation over a single night after investor Bill Ackman pulled $1.1 billion in funding.

The hedge fund manager ditched the 3.1million shares he bought just three prior the turmoil at the streaming giant continued to spiral, announcing his New York-based Pershing Square Capital Management was parting with the investment due to the firm’s ‘unpredictable’ future.

In January, he funneled over $1 billion into the streaming service just days after a disappointing forecast for subscriptions pushed the share price lower.

But he dumped that investment after the company reported its 200,00 subscriber loss, despite the exit-move costing him $400million.

Netflix’s decision in early March to suspend service in Russia after it invaded Ukraine resulted in the loss of 700,000 members alone.

How Netflix became a pandemic darling with its original content before losing 200,000 subscribers and the confidence of investors

1997 – Marc Randolph and Reed Hastings start Netflix after discussing ways to emulate Amazon’s internet sales model

1999 – Randolph and Hastings decline to sell Netflix to Jeff Bezos after receiving a roughly $15million offer 

2000 – Hastings and Randolph offer to sell Netflix to Blockbuster for $50million. Blockbuster CEO john Antioco declined saying ‘The dot-com hysteria is completely overblown 

2002 – Netflix goes public, selling 5.5million shares at $15 per share

2005 – Raking in over $500million in revenue, Netflix is shipping 1 million DVDs daily from its selection of over 35,000 films

2007 – Netflix launches its streaming website, the same year it delivers its billionth DVD

2008 – All Netflix customers with a DVD rental subscription are give full access to the online streaming service, free of charge

2009 – Streams on the Netflix website surpass all DVD shipments

2010 – Netflix reaches a $1billion deal to stream Paramount Lionsgate and Metro-Goldwyn-Mayer films

2011 – The same year Netflix becomes the largest source of internet streaming in North America, it splits its existing subscription model, offering separate plans for DVD rentals and streaming

2012 – Netflix launches in select countries across Europe, and signs a streaming deal with Disney and The Weinstein Company

2013 – Netflix begins producing and releasing original series

2014 – Subscription fees are raised from $7.99 to $9.99

2017 – After four years of producing original content, Netflix announces plans to make half its library consist of original content by 2019 by investing $8billion in the project

March 2020 – Number of new accounts rockets through May as much of the world goes into lockdown due to the Covid pandemic 

March 2022 – After the invasion of Ukraine Netflix announces it is halting all streaming services in Russia at the cost of 700,000 subscribers

April 2022 – Netflix’s announces it lost 200,000 subscribers in its first quarter. Hours later investor Bill Ackman pulls $1.1 billion in funding, costing Netflix $50 billion overnight  

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