On Thursday, Netflix announced their new subscription plan that aims to jumpstart the platform’s growth. During the second quarter of the year, Netflix lost 970,000 subscribers, alongside stagnant profits and lower share prices.
Their new “Basic with Ads” subscription will roll out in November across a dozen countries. It will be priced at $6.99, three dollars less than the no ads subscription.
Greg Peters, Netflix Chief Operating Officer, led the briefing about the new subscription option.
“The timing is great because we really are at this pivotal moment in the entertainment industry and evolution of that industry,” Peters said. He also noted that streaming has surpassed broadcast and cable TV in the U.S.
Video ads will vary from 15 to 30 seconds long. The “Basic with Ads” subscription will be available in Britain, Australia, Brazil, Canada, France, Germany, South Korea, Italy, Japan, Mexico, Spain, and the United States.
Netflix’s move to start adding ads into their streaming service is due to market competition and inflation. More and more subscribers are opting for cheaper, ad-supported subscriptions.