Netflix has launched its new low-cost subscription plan, Basic With Ads.
The new plan costs $7 a month, $3 less than the next cheapest plan, Basic, which costs $10 a month.
Eleven other countries also launched Basic With Ads this week, namely Australia, Brazil, Canada, France, Germany, Italy, Japan, South Korea, Mexico, Spain, and the UK.
“Basic With Ads” does what it says on the tin, that is, offers ads while you watch. The new plan offered by Netflix will show between four and five minutes of ads each hour, with each one running for up to 30 seconds. They’ll play before and during shows and movies, Netflix said.
But it should be noted that, besides the interruptions from advertisers, the new tier also comes with a number of limitations.
For example, streams are limited to 720p resolution, and content can only play on one device at a time, which is the same as the ad-free Basic tier.
But while you can download for offline viewing with the Basic, Standard, and Premium tiers, Basic With Ads does not allow this feature.
Also, some movies and shows will be missing from Netflix’s library due to licensing restrictions, though this could change if the streaming giant is able to agree on terms with its partners.
Netflix, which currently has 223 million subscribers globally, is hoping Basic With Ads will help to attract new customers and retain existing ones who are looking to save a few bucks in these challenging economic times.
“Basic with Ads is everything people love about Netflix, at a lower price, with a few ads in-between,” the company said on its website. “We’re confident that with Netflix starting at $6.99 a month, we now have a price and plan for every fan.”
One of Netflix’s main rivals, Disney+, is also introducing an ad-supported tier on December 8, costing $8 per month. Others already offer an add-supported tier; for example, Hulu’s costs $8 per month while Peacock charges $5.
How to get Basic With Ads
Log into your Netflix account and select “plan details” in Settings. Look for “change plan” and then select Basic With Ads from the four options. You’ll be put onto the new tier at the time of your next billing. New subscribers can simply select the Basic With Ads option when they sign up.
