In November, Netflix will introduce a subscription plan with advertising. The plan will cost about $7 a month. The streaming service will debut an ad-supported tier to attract new subscribers. Earlier, in the first half of the year, the company lost a lot of subscribers.
Netflix launches its "Basic with Ads" plan at $6.99, which is $3 less than Netflix's cheapest not ad-supported plan. The new plan will be available in 12 countries, including the U.S., Brazil, Germany, Japan and Korea, over 10 days.
According to Netflix officials, a user will watch 4-5 minutes of ads per hour. New Netflix movies on the service will have limited advertising to not interrupt the subscriber.
Netflix Chief Operating Officer Greg Peters noted that about 5-10% of the streaming service's catalog will be missing from the ad-supported plan due to licensing restrictions.
The company had no plans to offer a streaming option that included advertising in the past, but it changed its position in April, when the number of subscribers declined sharply in the first quarter and the service expected further decline.