Netflix Ads Are Officially Here with a Cheaper Plan Option Launching Soon

The ad-less streaming experience is becoming a thing of the past.

Plenty of streaming services have ads incorporated into their platforms. Peacock and Hulu have tiers of options for subscribers, charging more for subscriptions without ads. For the longest time, Netflix had no tiers. Eventually, there was an individual and family plan, with the individual plan costing less. Now though, after a year of reports about Netflix’s loss of at least one million subscribers at the beginning of the year, worries about revenue, harsher policies for password sharing, and a market flooded with streaming service options, Netflix is shifting its tier model.

According to Mashable, the platform announced that it was officially launching a lower-priced subscription option that would include ads. The Basics with Ads plan will be $6.99 a month and will be available to US customers on November 3. The cheaper ad tier will also be available to customers in Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, Spain, and the UK.

"We're confident that with Netflix starting at $6.99 a month, we now have a price and plan for every fan," a Netflix press release states. "While it's still very early days, we're pleased with the interest from both consumers and the advertising community—and couldn't be more excited about what's ahead. As we learn from and improve the experience, we expect to launch in more countries over time."

With the new tier in effect, Netflix pricing tiers will be structured as follows:

  • Basic with Ads will be $6.99 each month.
  • Basic is $9.99 each month. The maximum resolution is 720p and allows only one stream each time.
  • Standard is $15.49 each month. This tier offers up to two simultaneous streams with resolution up to 1080p.
  • Premium is $19.99 each month. This tier offers up to four simultaneous streams with resolution up to 4K.

The new ad plan will have a maximum of four to five minutes of ads per hour, according to the company. Each ad is anticipated to be between 15 and 30 seconds long. You will also not be able to download content on the Basic with Ads plan. Some shows and movies will initially not be available due to licensing agreements though Netflix execs share that the issue is in the process of being resolved.

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With Netflix caving and introducing an ad tier, it seems like the invention of streaming services is circling back closer and closer to cable. Shows are being launched weekly, ads are basically unavoidable, and if you really want to talk about the show everyone seems to be talking about, you're still going to have to pay for HBO.

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Opheli Garcia Lawler is a Staff Writer on the News team at Thrillist. Follow her on Twitter @opheligarcia and Instagram @opheligarcia.