Netflix with Ads Launches in November at $7 a Month

Netflix announced it will introduce a cheaper plan with advertising in November. At $7 a month, the plan is expected to attract new subscribers after the company lost subscribers in the first half of the year.

The "Basic with Ads" plan is $3 less than Netflix's lowest-priced offer without commercials. The new option will roll out in 12 countries including the United States, Brazil, Germany, Japan, and Korea. Subscribers will see four to five minutes of advertising per hour, Netflix said. New films will have limited advertising to preserve the cinematic experience.

5% to 10% of programming will not be available on the ad-supported tier because of licensing restrictions, Netflix COO Greg Peters said. "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," added Peters. He didn’t want to speculate on the number of new customers or how much additional revenue Netflix might generate. The company will provide forecasts for the fourth quarter when it releases earnings for Q3.

The new tier will debut in Canada 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 on Nov. 10.