Adverts are coming to Netflix — here's when the optional service is launching and why

Virgin Radio

14 Oct 2022, 09:39

Streaming giant Netflix is introducing a new option for customers to keeps costs down by including adverts. Trying to save pennies? Then you will be able to jump on a less expensive viewing plan from next month.

In a bid to keep viewers after losing more than a million customers due to rising competition and increasing living costs, the new cash-savvy plan will be introduced from 3 November in the UK, US, Canada, Mexico and Australia. The price is set at just £4.99 a month in the UK and $6.99 in America.

Taking a big subscription hit in the first half of the year, people have pulled out of the service due to rising costs, with the UK's least expensive plan minus ads starting at £6.99 a month.

The pioneers of subscription-based streaming are sharing updated figures with investors next week and said in a press release: "We're confident that... we now have a price and plan for every fan.

"While it's still very early days, we're pleased with the interest from both consumers and the advertising community and couldn't be more excited about what's ahead."

Netflix has said subscribers should expect to see an average of four to five minutes of adverts per hour.

The Basic with Ads package will have a limited number of films and TV series due to 'licensing restrictions with third parties' and viewers will also only be able to stream Netflix on one screen at a time, and won't be able to download titles.

Greg Peters, Netflix’s chief operating officer, explained: “The launch could mean some of our existing members move off [more expensive] plans.

“I definitely believe that a lower consumer-facing price with good incremental ad monetisation will enable us to grow membership and build a really significant incremental revenue and profit stream.

“In short, Basic with Ads is everything people love about Netflix, at a lower price, with a few adverts in between. We now have a price plan for every fan. While it is still early days, we’re pleased with the interest from both consumers and the advertising community.”