Netflix to Charge $6.99 a Month for New Ad-Supported Tier

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Netflix to Charge $6.99 a Month for New Ad-Supported Tier
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Breaking: Netflix will charge $6.99 a month for its new ad-supported service when it debuts next month, with four to five minutes of ads an hour

Netflix said the new tier, called “Basic with Ads,” will initially be available in 12 countries including the U.S., U.K., Canada, Germany, Japan, Brazil and Australia, though it plans to launch more broadly over time. The ad-supported tier will launch in those initial markets globally in stages between Nov. 1 and 10, the company said.

Greg Peters, Netflix’s chief operating officer, said existing subscribers would remain in their current plan at the same price. They must choose to change to the ad-supported plan if they wish to do so. Not all of Netflix’s vast library will appear on the ad-backed service, the company said, because of licensing restrictions that it continues to work on. Users also won’t be able to download content as they can on other tiers of service. Netflix’s ad tier and basic tier will have lower resolution for viewers than premium tiers, but will still be high definition.

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