The inevitable has happened: Netflix is now introducing ads… yes, ads! Though Netflix has publicly stated in the past that they’re an “advertising free” platform, I think we all knew that this day would come around sooner rather than later. Netflix has now implemented a new plan that will include ads, and it’s time to decipher all your burning questions about what the new Netflix plan really means.
On Oct. 13, Netflix released an official announcement confirming speculation that they would be releasing their Basic with Ads subscription plan. Though the story had broken early in 2022, Netflix’s confirmation has sent the internet into a frenzy, with everyone wondering what an ad plan will entail and what the differences between plans really are.
IS NETFLIX’S BASIC WITH ADS PLAN FREE?
Unfortunately, the new plan is not going to be free. Coming in at $6.99, the Basic with Ads plan is the cheapest of all available subscriptions consumers can purchase with Netflix, though. It’s also worth mentioning that the plan is cheaper than HBO’s $9.99 ad-based plan while rivaling Hulu’s $6.99 plan in the same fashion.
WHY IS NETFLIX ADDING ADS?
To be frank, with a large loss of subscriptions in 2022 with the rise of competitor streaming services, Netflix had really no choice but to add ads to their platform. Their main competitors, HBO Max and Hulu, have already implemented ads into their streaming services, something that subsequently brings in more profit for the platform.
Netflix reportedly lost around 1.3 million subscribers during the second quarter of 2022, and the ads are coming in at a perfect time to boost the company’s profit. At the Cannes Lions festival held in June 2022, Netflix’s co-CEO Ted Sarandos spoke about the decision to implement ads to the platform, stating, “We’ve left a big customer segment off the table, which is people who say: ‘Hey, Netflix is too expensive for me and I don’t mind advertising.’ We’re not adding ads to Netflix as you know it today. We’re adding an ad tier for folks who say, ‘Hey, I want a lower price and I’ll watch ads.’”
WILL THE NEW PLAN CHANGE YOUR CURRENT NETFLIX SUBSCRIPTION?
Don’t worry, your regular Netflix subscription will not be altered by the introduction of the ad-based plan. The only thing that’s really changing is now consumers will have the option to purchase the $6.99 a month Basic with Ads plan instead of their original Basic plan priced at $9.99.
WHAT ARE THE DIFFERENCES BETWEEN PLANS AND PRICING?
There will be four different tiers of plans and pricing available on Netflix after the introduction of the Basic with Ads tier. The main discrepancies between each option include pricing options, available television shows and movies to watch, and the ability to download content.
- Basic with Ads will be priced at $6.99 per month, with limited TV shows and movies available to stream, and no ability to download content.
- Basic will be priced at $9.99 per month, supporting unlimited TV shows and movies, and will allow downloads on one device.
- Standard will be priced at $15.49 per month, supporting unlimited TV shows and movies, and will allow downloads to two devices.
- Premium will be priced at $19.99 per month, supporting unlimited TV shows and movies, and will allow downloads to four devices.
WHEN IS NETFLIX ADDING ADS?
The Basic with Ads option will be available to Netflix subscribers on Nov. 3 in the U.S. Additional countries eligible to switch their plan include Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, Spain, and the U.K. Get ready for the new era of Netflix!