# Netflix ad-supported plan to launch in November at $7 a month
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-10-14
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Netflix to Launch $6.99 Ad-Supported Streaming Plan in
Meta Description: Get ready for Netflix's new Basic with Ads plan at just $6.99 per month starting in November. Enjoy limited ads and affordable pricing across 12 countries.
URL: https://financedigest.com/netflix-ad-supported-plan-to-launch-in-november-at-7-a-monthhtml

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By Dawn Chmielewski and Lisa Richwine

LOS ANGELES (Reuters) -Netflix Inc said on Thursday it will introduce a streaming [plan](https://www.financedigest.com/strong-performance-of-investec-lowes-structured-product-maturities.html) with advertising for roughly $7 per month in November, a move to attract new [subscribers](https://www.financedigest.com/iliad-meets-goal-to-become-europes-5th-largest-telecoms-operator.html) after the company lost customers in the first half of the year.

The $6.99 cost for the “Basic with Ads” plan is $3 less than Netflix’s lowest-priced tier without commercials. The new [option will roll out in 12 countries including the United](https://www.financedigest.com/stanchart-weighing-options-including-sale-of-aircraft-lessor-unit.html "StanChart weighing options, including sale, of aircraft lessor unit") States, Brazil, Germany, Japan and Korea, over 10 days.

Subscribers to the [plan will see](https://www.financedigest.com/inpost-sees-better-margin-in-poland-plans-no-job-cuts-this-year.html "InPost sees better margin in Poland, plans no job cuts this year") roughly four to five minutes of advertising per hour, Netflix said. Newly released films will have limited advertising to preserve the cinematic experience.

About 5% to 10% of Netflix’s programming will not be available on the ad-supported alternative because of licensing restrictions, Netflix [Chief Operating Officer](https://www.financedigest.com/iris-software-group-names-matt-tuson-as-chief-revenue-officer.html "IRIS Software Group names Matt Tuson as Chief Revenue Officer") Greg Peters told reporters.

[Shares of Netflix](https://www.financedigest.com/netflix-cuts-prices-in-some-countries-to-boost-subscriptions-shares-drop.html "Netflix cuts prices in some countries to boost subscriptions, shares drop") were up 5.4% at $232.86 in late afternoon trading. The [company’s stock had fallen 62% this year](https://www.financedigest.com/companies-that-dont-upgrade-their-financial-processes-this-year-will-get-left-behind.html "Companies that don’t upgrade their financial processes this year will get left behind") before Thursday’s announcement.

Netflix [executives had adamantly opposed adding commercials to their service](https://www.financedigest.com/aon-benfield-launches-managed-care-services-platform-with-the-appointment-of-three-key-executives.html "Aon Benfield launches Managed Care Services platform with the appointment of three key executives") for years. They announced a change of heart in April when the company stunned [Wall Street](https://www.financedigest.com/weary-wall-street-cheers-improved-consumer-confidence.html "Weary Wall Street cheers improved consumer confidence") by shedding subscribers in the first quarter and predicting additional defections.

“We at Netflix have a huge opportunity ahead to grow our unit and to attract more subscribers. And part of that is having a wide range of [pricing plans,”](https://www.financedigest.com/factbox-u-s-offers-new-details-on-plan-to-cap-russian-oil-prices.html "Factbox-U.S. offers new details on plan to cap Russian oil prices") Peters said on Thursday.

Peters declined to [estimate how many customers](https://www.financedigest.com/yum-beats-sales-estimates-as-customers-flock-to-kfc-taco-bell-deals.html "Yum beats sales estimates as customers flock to KFC, Taco Bell deals") would sign up for the ad-supported plan or how much additional revenue Netflix might generate. The company will provide forecasts for the [fourth quarter](https://www.financedigest.com/german-gdp-contracted-by-0-4-in-the-fourth-quarter.html "German GDP contracted by 0.4% in the fourth quarter") when it releases earnings on Tuesday.

Cowen & Co analyst John Blackledge, in a research note, said the addition of advertising offered a “significant [opportunity to unlock member](https://www.financedigest.com/millions-of-uk-linkedin-members-eligible-for-the-opportunity-of-a-lifetime.html "Millions of UK LinkedIn members eligible for the opportunity of a lifetime") growth” among price-sensitive audiences.

He pointed to a Wall Street Journal report that Netflix had [set a goal](https://www.financedigest.com/britain-sets-5g-goal-says-no-magic-number-of-operators.html "Britain sets 5G goal, says no ‘magic number’ of operators") of 13.3 million ad-supported viewers in the United States by the third quarter of 2023.

Other streaming services including Walt Disney Co’s Hulu and Disney+ and [Warner Bros Discovery’s](https://www.financedigest.com/warner-bros-discovery-adds-2-million-subscribers-in-first-quarter.html "Warner Bros Discovery adds 2 million subscribers in first quarter") HBO Max already have, or plan to offer, ad-supported options that cost less. Those [services charge between $8 and $10 per month](https://www.financedigest.com/russian-services-activity-shrinks-for-third-month-running-in-dec-pmi.html "Russian services activity shrinks for third month running in Dec -PMI") for plans with commercials.

Netflix, known for hits such as “Stranger Things” and “Squid [Game,” reported 220.7 million](https://www.financedigest.com/mobile-games-developer-huuuge-says-has-24-2-million-at-svb.html "Mobile games developer Huuuge says has .2 million at SVB") paying subscribers as of June, down nearly 1.2 million from the start of the year. The company [projected it would add 1 million](https://www.financedigest.com/sse-to-invest-122-million-in-scottish-pumped-hydro-project.html "SSE to invest 2 million in Scottish pumped hydro project") customers in the third quarter.

The ad-supported [plan from Netflix will debut in Canada](https://www.financedigest.com/canada-pm-trudeau-planning-snap-election-seeks-approval-for-covid-response-sources-2.html "Canada PM Trudeau planning snap election, seeks approval for COVID response – sources") and Mexico on Nov. 1, and in the United States, Brazil, United Kingdom, France, Italy, Germany, Australia, Korea and Japan on Nov 3.

Spain will follow a [week later](https://www.financedigest.com/wall-st-seen-steady-ahead-of-inflation-data-fed-later-in-week.html "Wall St seen steady ahead of inflation data, Fed later in week") on Nov. 10.

They’re very well positioned, because they’re a premium brand and marketers are extremely interested in being aligned with quality content,” said Greg Kahn, a former ad industry executive who now runs a media [advisory firm](https://www.financedigest.com/aon-announces-agreement-to-acquire-risk-management-firm-creating-a-comprehensive-cyber-risk-management-advisory-group.html "Aon announces agreement to acquire risk management firm, creating a comprehensive cyber risk management advisory group").

Kahn [predicted the new ad-supported service](https://www.financedigest.com/the-digital-first-world-financial-services-predictions-for-2022.html "The digital-first world: financial services predictions for 2022") would likely cause some price-sensitive subscribers to opt for the cheaper tier, but added, “There’s much more potential in gaining revenue and gaining a new subscriber base.

Jeremi Gorman, Netflix’s president of worldwide advertising, said Netflix nearly sold out its ad inventory for the launch of the new tier, attracting interest from automakers, consumer packaged goods companies and [luxury brands](https://www.financedigest.com/loreal-buys-luxury-brand-aesop-with-eye-on-china.html "L’Oreal buys luxury brand Aesop with eye on China").

Advertisers can target viewers by country or genre, or run commercials on the [service’s top](https://www.financedigest.com/top-5-seo-services-you-need-to-succeed-in-2022.html "Top 5 SEO Services You Need To Succeed In 2022") 10 shows. [Brands also can exclude ads from content](https://www.financedigest.com/sdl-and-divvyhq-collaborate-to-simplify-content-planning-translation-and-delivery-for-global-brands.html "SDL and DivvyHQ Collaborate to Simplify Content Planning, Translation and Delivery for Global Brands") featuring graphic violence, sex or nudity, Gorman said. Netflix also is introducing third-party verification to confirm ad impressions and traffic. Ratings agency Nielsen will also provide audience measurement, starting [next year](https://www.financedigest.com/novartis-to-spin-off-generics-business-sandoz-next-year.html "Novartis to spin off generics business Sandoz next year").

[(Reporting by Lisa Richwine and Dawn Chmielewski in Los AngelesEditing by Matthew](https://www.financedigest.com/hurricane-matthew-causes-up-to-15bn-impact-to-us-and-caribbean-economies-in-october-according-to-aon-catastrophe-report.html "Hurricane Matthew causes up to bn impact to US and Caribbean economies in October, according to Aon catastrophe report") Lewis)


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