Netflix Launches $7 Per Month Ad-Supported Plan — With Limits

Netflix is ​​set to launch its ad-supported streaming plan on Thursday.

The company said that at $7 per month, the new subscription tier costs less than half of Netflix’s most basic plan and will include 4 to 5 minutes of ads per hour. But the plan comes with some limitations. Netflix said that viewers will not be able to download the show to watch later.

In addition, a “limited number” of movies and TV shows will not be available on an ad-supported level at all, with the company blaming the license restrictions that it was “working” on the issue. The Wall Street Journal reported Wednesday that Netflix is ​​still in talks with Disney, NBCUniversal, Sony Pictures Television, Warner Bros. Discovery and Lionsgate.

Netflix remains the world’s largest streaming service, with 223 million subscribers summer boom In sign-up that reversed the loss of customers earlier this year. The 15-year-old streaming service never included ads before, but the Los Gatos, Calif., company decided to go in a new direction six months ago After a turbulent start to 2022, viewership declined.

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Shares of Netflix have also lost nearly half their value this year, amid a broader stock market that has hit technology companies hard.

The ad-supported option will be available in the US, Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, Spain and the UK.

Netflix is ​​betting that the low-cost ad-based service will prove popular at a time when high inflation is pressing millions of households to curb their spending. Amazon, Apple and Walt Disney Co. The company, which is facing increasing competition from the U.S., has also started adding video games to its lineup at no extra cost.

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