Netflix has announced the “Basic With Ads”, a new and cheaper subscription plan that will be introduced by the company on November 3rd, 2022, in 12 countries around the globe, including the US, Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, Spain, and the UK.
According to the details, ‘Netflix Basic With Ads’ is essentially a cheaper version of the already available ‘Basic Plan’ and will cost users $6.99 (United States) a month in exchange for an average of four to five minutes per hours while providing access to a number of series and movies on Netflix.
However, the Basic With Ads will not include the entire Netflix catalog due to licensing restrictions, which the company says it’s currently working on and the new subscription plan will also lack the ability to download content to a device for later viewing and the video quality will be capped at 720p/HD.
Netflix seems to be a lot more competitive with their ad-supported tier as its going to display fewer ads compared to other streamers like HBO Max, Hulu, Peacock, Discovery+, and Paramount+ display between eight and 23 ads per hour with similar ad-supported subscription plans.
However, the ‘Basic With Ads’ might not be the most value for money subscription plan offered by the company as its only $3 cheaper than the ‘Basic Plan’ and has several restrictions as mentioned above, while showing advertisements between your favorite shows and movies.
Netflix has introduced the ‘Basic With Ads’ subscription plan as a way to make up for lost revenue due to subscribers leaving the platform earlier this year and this has reflected in the company’s stock price as well.
Furthermore, Netflix says that the problem is made worse due to password sharing among friends, which goes against the company’s policies as it only allows users under the same roof to share an account.