Netflix to Launch Cheaper Plan With Ads for $6.99 a Month

Netflix Launches Ad Tier for $6.99 Monthly

Netflix has gradually increased the cost of its streaming service over recent years, with some subscribers now paying up to $20 per month for the top tier.

But soon there will be a cheaper alternative: a new ad-supported plan that can lower your monthly fee.

Meet Netflix’s Basic With Ads Plan

Beginning in November, Netflix will start testing a fresh subscription model that offers its basic tier with commercials. Subscribers who opt in will pay just $6.99 per month in the United States and receive access to a portion of Netflix’s library at 720p HD.

Those who select Netflix’s most affordable tier will be able to watch most of the service’s titles, though certain programs may be restricted. Netflix has explained that these gaps are due to licensing limitations and that it’s working to address them.

Netflix Basic with Ads is scheduled to launch at 9 a.m. PT on Nov. 3. Alongside the United States, the tier will roll out in Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, Spain and the U.K.

The Basic with Ads plan will include commercials before and during films and episodes, with individual ads running up to 30 seconds. Netflix says viewers will see around four minutes of ads per hour, which is significantly less than typical cable TV.

Netflix also stated that Kids profiles for households with children will not display ads. But don’t assume you can simply convert every profile to Kids — those profiles restrict viewing to age-appropriate material.

Is the Ad-Supported Basic Plan a Good Fit for Your Household?

The current Netflix Basic tier costs $9.99 per month, so the new ad-supported option trims about $3 off your monthly bill. Keep in mind that the Basic plans only provide 720p HD (which is not full HD), so picture quality may be a drawback.

Viewers on the existing Basic and Standard plans might find the downgrade worthwhile, but anyone wanting 4K content will still need to pay $20 per month. Ultimately, you’ll have to decide whether saving a few dollars is enough to tolerate advertisements and lower resolution.

Netflix Plans Compared

Netflix PlanVideo ResolutionSimultaneous Devices StreamingAccess to Entire CatalogPrice
Basic with Ads720p HD1No$6.99/mo.
Basic720p HD1Yes$9.99/mo.
Standard1080p HD2Yes$15.49/mo.
Premium4K UHD4Yes$19.99/mo.

If you want to move to Netflix’s Basic with Ads plan, visit the Netflix site starting at 9 a.m. PT on Nov. 3 and go to your account settings. From there you can switch to the less expensive option.

If you could use assistance organizing your subscriptions, including Netflix, see our guide to the best apps for managing subscriptions. A little pruning could save you more than you expect.

Jordan Reeves is a senior writer for Savinly covering technology.

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