Netflix Basic With Ads Plan Pricing, Launch Date Revealed
Netflix is about to launch a new package. The streaming service, which has seen subscription costs increase drastically since it launched, is looking now to a cheaper model. But the new discount service does come with a catch: You'll have to watch a few ads in between all of your content.
The idea of an ad-supported version of Netflix isn't new and has been met with some skepticism. It's also something other streaming services already do. Hulu is one example, and it averages more ads than Netflix initially intends. It's worth pointing out Netflix may increase the amount of ads it runs as time goes on. Its other packages will be unaffected by the change, so if you're not trying to save a few dollars, and you hate ads, you still have three options.
When it launched, the Netlfix was priced at $8. By 2014, three options were available: a "premium" service priced at $12, the "standard" service at $9, and a "basic" package which retained the $8 price point (via Vox). There were some slight differences, but none of them were related to content. Differences mainly centered on the amount of people who could use the account simultaneously, and the quality of the streams themselves — with "basic" streaming being limited to "SD" and "premium" users getting a 4K option. The prices of all three tiers have increased over the years, with Netflix charging $9.99 per month for the basic plan, $15.49 for standard, and $19.99 for premium. If that all seems a bit too much, you'll be happy to know their new "basic with ads" plan is the cheapest the company has ever launched.
This is the cheapest Netflix has ever been
Ads may be annoying, but at $6.99, the new basic with ads package is the cheapest rate the company has ever offered in the United States. It's essentially the same settings as the current basic package, but $3 cheaper and includes an "average of 4 to 5 minutes of ads per hour" according to a statement issued by the streaming service. Pricing details for other locations are yet to be released, but the company has said basic with ads will be an option in 11 other countries: Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, Spain and the UK.
The ads themselves will be "between 15 and 30 seconds in length" and "play before and during" the streaming service's shows and movies. There are also a few restrictions with the plan. Netflix says that some movies and TV shows available on the ad-free plans aren't available on the new package because of "licensing restrictions." However, it also says it's working on fixing that problem. Basic with ads users will not be able to download shows to view offline. The company has also noted that "the basic with ads plan may not be available through all third-party billing partners and packages. Please check with your provider to confirm availability." Netflix's latest subscription model is due to launch on November 3 at 9 a.m. PST. There's a possibility the streaming service sees it as an opportunity to regain some subscribers and give its prospects a boost after its share price took a major dive earlier this year.