Netflix Introduces Ad-Supported Subscription Option Due to Decreasing Subscriber Count
In a move to compete with streaming giants and address dwindling subscriber numbers, Netflix has announced the launch of a new, cheaper plan called Basic with Ads. The plan, priced at $6.99 per month in the US, will be available starting November 3 in 12 countries, including the United States [1].
What's Included in the Basic with Ads Plan?
The Basic with Ads plan offers a budget-friendly option for viewers, with some trade-offs. While the plan features ads during streaming, it provides access to almost all of Netflix's library, except for a select group of popular titles blocked due to licensing [1][3].
The exact number and frequency of ads have not been detailed, but viewers can expect periodic commercials inserted during viewing [1]. The plan supports high-definition video quality (up to 720p) for watching films and shows on one device at a time [1].
Restrictions and Trade-offs
There are some restrictions to consider with the Basic with Ads plan. Content selection will be limited, with about 5-10% of Netflix's content unavailable [1][3]. This includes popular TV shows such as Cobra Kai, Breaking Bad, The Crown, Arrested Development, Grey’s Anatomy, House of Cards, Peaky Blinders, and others [1][3].
Additionally, the plan does not allow users to download content for offline use, and ads will not appear in any Netflix games [1].
Competition and Subscriber Losses
Netflix has experienced a decline in subscribers for the first time in over a decade this year, with at least 200,000 down in the first quarter [1]. Meanwhile, Disney+ is gaining more subscribers, particularly in millions, while Netflix faces this reduction [1].
In August, Disney+ gained 14.4 million customers for the quarter concluded June 30 [1]. Reed Hastings, Netflix's executive, mentioned in April that the streaming giant is considering cheaper deals with ads due to mounting pressure from streaming competitors [1].
In May, Netflix imposed redundancies on over 150 workers, dozens of contractors, and part-time employees [1].
Sources:
- Netflix's new cheaper ad-supported plan is called Basic with Ads and costs $6.99 per month in the US
- Netflix’s new Basic with Ads plan will cost $6.99 per month in the US, and it launches on November 3
- What’s missing from Netflix’s new ad-supported Basic with Ads plan
- The Basic with Ads plan, priced at $6.99 per month, represents Netflix's attempt to maintain competitiveness in the technology-driven entertainment sector, as it faces subscriber losses and competition from streaming giants like Disney+.
- Despite the introduction of the ad-supported Basic with Ads plan, viewers will find limitations in content selection, as popular titles like "Cobra Kai," "Breaking Bad," "The Crown," "Arrested Development," "Grey’s Anatomy," "House of Cards," "Peaky Blinders," and others will not be accessible, due to licensing agreements.
