Netflix Officially Reveals Plans For $6.99 Basic Tier

After months of speculation surrounding Netflix’s forthcoming ad-supported tier, the company has officially confirmed the launch date for ‘Basic with Ads’: November 3.

At a price of US$6.99 per month, the new subscription plan is US$3 cheaper than the US$9.99 ‘Basic’ tier with no advertisements, and cheaper than both Hulu’s (US$7.99) and HBO Max’s (US$9.99) ad-supported offerings. 

According to Netflix, ‘Basic with Ads’ will be available in 12 countries, including Australia, Brazil, Canada, France, Germany, Italy, Japan, Korean, Mexico, Spain, the UK, and the US. 

The company says that subscribers to the upcoming tier will still enjoy the same variety of television shows and movies, including a personalized algorithm and feed.

However, unlike the ad-free plan, video quality will only go up to 720p/HD, with an average of four to five minutes of advertisements per hour. Each commercial will span 15 or 30 seconds, and will be played before or during the films. 

In addition, users will not be able to download shows, and certain series will not be available due to licensing restrictions. 

“We’re confident that with Netflix starting at $6.99 a month, we now have a price and plan for every fan,” the company concludes. 

[via CNBC and Netflix, cover image via Natanael Alfredo Nemanita Ginting | Dreamstime.com]