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Netflix Ads: Netflix Reveals Price and Release Date

Netflix

LOS GATOS, CA/USA - JULY 29, 2017: Netflix corporate headquarters and logo. Netflix specializes in and provides streaming media and video-on-demand online and DVD by mail. (Ken Wolter / Shutterstock.com)

Netflix announces the release date and price of their upcoming ad-supported streaming service. 

The new package is significantly less expensive than the platform's regular service.

Starting next month, Netflix will offer a new subscription tier called "Basic with Ads" for a price that is less than half the cost of the platform's standard service.

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On Thursday, Netflix announced it would launch a cheaper ad-supported plan in November. In the United States, the new lower-cost tier will cost $6.99 per month; it will initially roll out in 12 countries starting on November 1 and will become available in the United States, Australia, Brazil, France, Germany, Italy, Japan, Korea, and the United Kingdom on November 11. On November 10, Spain will join the list of countries receiving access to the new plan.

"We believe that with this launch, we will be able to provide a plan and a price for every Netflix fan," said Netflix COO Greg Peters in a press conference on Thursday. "The most important thing for us is that we want to offer consumers choice and to figure out what is the best offering for them, and that could mean that some of our existing members shift off [of ad-free subscriptions>."

Netflix has announced that the forthcoming plan will include between four and five minutes of advertising per hour, with 15 and 30-second commercial spots. Basic Ads will not allow customers to download material; instead, they will limit them to just a pre-roll before movies are downloaded. The company is attempting to "preserve that cinematic model" by only providing a "pre-roll" before new releases; however, they will present prior films in a more "traditional" form, including both pre-roll and mid-roll advertisements.

Netflix launches a new Basic with Ads subscription tier that includes ads, starting at $9.99 per month. This joins their existing Basic, Standard, and Premium ad-free plans, ranging from $9.99 to $19.99 monthly.

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