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

Netflix has steadily raised the prices of its streaming service over the past few years, with subscribers paying up to $20 a month for its premium tier.

However, you soon will have a way to decrease your monthly subscription price with a new ad-supported tier.

Introducing Netflix’s Basic With Ads Tier

Starting in November, Netflix will begin experimenting with a new subscription model offering its basic tier with advertisements. Those who opt in will pay only $6.99 a month in the United States and gain access to a selection of Netflix content at 720p HD.

Subscribers who choose Netflix’s lowest-priced tier will gain access to most of its catalog, but some content may be unavailable. Netflix has said this is due to licensing restrictions and it is working on the issue.

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

The Basic with Ads tier will place ads before and during movies and TV shows, with each ad lasting up to 30 seconds. Netflix says subscribers will be subjected to four minutes of ads per hour, substantially less than traditional cable television.

Netflix has noted that the Basic with Ads tier will not show ads on Kids profiles for subscribers with children. But before you think of setting all your accounts up with Kids profiles, know that such profiles are limited to age-appropriate content.

Is the New Basic With Ads Tier Worth It for Your Home?

The current Netflix Basic plan runs consumers $9.99 a month, so the new ad-supported tier will save you $3 a month. Remember that the Basic tiers provide only 720p HD video (that isn’t even full HD), so that may leave something to be desired.

Consumers on the existing Basic and Standard tiers may find the switch worth it, but those looking for a 4K experience will still need to shell out $20 a month. In the end, you need to ask yourself if the price reduction is enough to sit through ads in an outdated TV resolution.

If you wish to switch to Netflix’s Basic with Ads plan, head to the Netflix website starting at 9 a.m. PT on Nov. 3 and visit your account settings. From there, you can switch over to the cheaper plan.

If you need help managing your ongoing subscriptions, including Netflix, check out our article on the best apps to help you manage subscriptions. You never know how much money you might save with a bit of weeding.

Michael Archambault is a senior writer for The Penny Hoarder specializing in technology.