We finally learned more about Netflix’s highly-anticipated ad-supported subscription plan. The streaming service giant revealed several details about the tier, including the launch date and price.
The ad-supported plan will officially roll out in Canada and Mexico on November 1st before making its way to the United States, UK, and other big markets on November 3rd. The price of the plan for U.S. users will be $6.99 on a monthly basis, which is $3 cheaper than the Basic tier ($9.99), Netflix’s cheapest option without ads.
Netflix also shared more info about the way ads will be presented to the users. According to Netflix COO Greg Peters, ads will be played before and during shows and movies. There will be “four to five minutes of ads per hour,” with each ad running from 15 to 30 seconds.
“We believe that with this launch, we’ll be able to provide a plan and a price for every Netflix fan,” said Peters.
The ad-supported plan will come with a lower price but also several limitations. Certain TV shows and movies won’t be available, with the streamer projecting that five to 10 percent of its library will be locked for the users of this tier. Also, the download for later watching option also won’t be included.
Netflix objected to the introduction of ads to its platform for years, but disappointing earnings results, loss of subscribers, and increasing competition forced the company to change its stance. Netflix stock is currently going for $231.77 per share, which is 61.20 percent down year to date.