A few months ago, there were rumors that Netflix would roll out a more budget-friendly subscription package. Company executives have previously denied that the new tier was launching soon and stated that they were still in the process of making a decision. Apparently, they made that decision pretty fast.
Netflix has indeed come up with an ad-supported subscription tier. The streaming giant announced today that the new package will be arriving this November. It may be a move to undercut a similar offering from rival streaming provider Disney+ that is reportedly going to be implemented in December.
The move by Netflix is also in response to its stagnating growth numbers. The streaming giant has been steadily losing subscribers as rivals are eating up the market share that was once dominated by Netflix. The cheaper ad-supported tier will hopefully attract more budget-conscious subscribers to the platform. The ad-supported tier The new tier will be called Basic with Ads.
The new ad-supported tier, named "Basic with Ads", will cost $6.99 in the US. The package will also be available in Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, Spain, and the UK. The new budget tier will have four to five minutes of ads for every hour of content.