Netflix Finally Launches Its Ad-Supported Plan for $6.99 per Month

Bradley Rhodes -

Global Internet video streaming giant Netflix has launched its ad-supported subscription offering called Basic with Ads for $6.99/month in a number of countries, including Canada, Mexico, the United States, the United Kingdom, Australia, Brazil, Spain, France, Germany, Italy, Japan, and South Korea. Exact prices may vary by country.

With the new lower-priced ads plan, users will have access to Netflix's entire library of shows but will be limited to a maximum available quality of 720p. About 5% to 10% of Netflix's content catalog will not be accessible due to "licensing restrictions."

The streaming giant has selected Microsoft as its global advertising technology and sales partner.

Netflix to Partner with Microsoft on a New Ad-Supported Subscription
Netflix has been talking to other potential partners in recent months to launch a subscription with ads, including Google and Comcast, but chose Microsoft for its “flexibility to innovate over time” and “strong privacy protections.”
Recorded News — Tech NewsBradley Rhodes

Users of the "basic" subscription will see an average of 4 to 5 minutes of ads per hour – before and during shows or films. Each ad insert will be 15-30 seconds long with no ability to skip or fast-forward through them. The cheapest plan also removes the ability to download content for offline viewing.

Netflix Introduces Subscription Payment Option That Bypasses the App Store
Earlier this year, Apple began allowing some apps to use external links to let their users log in and pay for subscriptions outside of the Apple Store. Netflix is now launching an option in its iOS app that takes users to its website to finish a new subscription.
Recorded News — Tech NewsBradley Rhodes

Not all content will be interrupted by ads – for example, major feature-length releases will be limited to just one ad.

Note that Netflix has been resistant to an ad tier, but a significant drop in the number of users and, consequently, in revenues, forced the company to find new revenue sources, one of which is introducing a cheaper tier.