NETFLIX on Thursday announced the launch date of its cheapest-ever tier as the cost of living crisis bites for millions across the globe.
The new ad-supported payment plan will cost £4.99 a month in the U.K. and is available from November 3.
To make up for lost revenue, adverts between 15 and 30 seconds long will play before and during series and films.
It marks a significant departure from Netflix’s years-long commitment to operating its service without adverts.
Basic, the current cheapest Netflix plan, costs £6.99/$9.99 a month and lets users stream in standard definition on one device.
The new tier, Basic With Ads, is launching in 12 countries including Australia, Brazil, Canada, France, the UK and the US.
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“Basic with Adverts is everything people love about Netflix, at a lower price, with a few adverts in-between,” Netflix’s Greg Peters said.
The new plan, which Netflix first teased in April, offers most of the features of its Basic plan but with a few small differences.
Customers will be able to stream at HD resolution (720p) on up to one device at a time. Basic is also upgrading to 720p resolution.
An average of four to five minutes of video adverts will play per hour. Netflix said it will avoid playing the same advert too many times.
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A handful of films and TV series won’t be available on the new plan due to licensing restrictions.
There will also be no ability to download movies and series on Basic with Adverts.
Customers will be able to sign up for Basic With Adverts from November 3 at 4 pm UK time (12 pm EST).
To sign up, visit Netflix.com and register with your email, date of birth and gender to get started.
If you have an account, log in to Netflix on a browser and hover your mouse over the profile icon in the top-right corner of your screen.
Click Account> Change plan> Basic With Adverts.
Netflix charges up to £15.99/$19.99 a month for a subscription and doesn’t currently show ads alongside its content.
The streaming giant is exploring new ways to tempt subscribers amid fierce competition from rivals such as Disney+ and Amazon Prime.
Some 970,000 viewers quit the streaming giant between April and July, following a massive exodus at the beginning of the year.
People are dropping their subscriptions as the cost of living crisis bites and inflation soars.
On top of the new cheaper payment tier, bosses have several big plans to drag their bank balance back up to its former glory.
A crackdown on accounts that are shared outside their household has already started, requiring people to pay extra if caught.
So far, it’s only being tested in five countries including Argentina, El Salvador, Guatemala, Honduras, and the Dominican Republic.
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