Netflix is launching its ad-based subscription plan for $6.99/month

Netflix has finally introduced its ad-based subscription plan, months after the company initiated plans for this option as a way of revamping its dwindling revenues.

The plan, officially known as Basic with Ads is priced lower than the other offers and will have 15-30 second ads playing before and during shows and films.

“We’re confident that with Netflix starting at $6.99 a month, we now have a price and plan for every fan,” the company said in a blog post.  “We’re pleased with the interest from both consumers and the advertising community — and couldn’t be more excited about what’s ahead. As we learn from and improve the experience, we expect to launch in more countries over time.”

The streaming platform says videos will play for four to five minutes per hour, much lower than commercials running on standard broadcast or cable TV.

The price for Netflix’s ad-free plans (Basic, Standard, and Premium) remain unchanged.

The streaming giant was hesitant to adopt the advertisement model for its content, but an unprecedented drop in subscriber numbers led to a change of heart. It now hopes that this model will turn around its business as competition from traditional and emerging competitors eats into its market.

“Basic with Ads presents an exciting opportunity for advertisers — the chance to reach a diverse audience, including younger viewers who increasingly don’t watch linear TV, in a premium environment with a seamless, high-resolution ads experience.” The company said.

The plan will first initially be available in Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, Spain, the UK and the US.

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Simon W Nderitu

Simon is a tech enthusiast who keeps a close eye on emerging technologies, startups and the general business environment. You will often catch him totally immersed and drooling over Artificial Intelligence, Machine Learning, Virtual Reality, Augmented Reality, IoT and just about any other tech that promises to revolutionize the way we live. Send tips to

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