Netflix will launch the video service with ads in early November. This streaming service called “Basic with Ads” will cost $6.99 per month in the US and should attract new customers to Netflix. In total, the service will be launched in twelve countries. In addition to the United States, these countries include Australia, Brazil, the United Kingdom, Canada, France, Germany, Italy, Japan, South Korea, Mexico, and Spain.
According to Netflix, this service is $3 a month cheaper than the cheapest ad-free streaming version offered by the company. Ads last between ten and thirty seconds. Commercials should be no longer than four to five minutes per hour. COO Greg Peters said the vast majority of Netflix shows will be available on Basic with Ads.
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Netflix has faced significant subscriber losses this year, in part because people are saving on streaming services due to rising inflation. But Netflix is also facing increased competition, including competition from Amazon Prime and Disney+. By offering a cheaper version, Netflix hopes to attract more customers.
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