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Netflix To Offer $7/Month Plan But You Have To Watch Ads

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SOURCE - Netflix said Thursday it will launch a cheaper, ad-supported streaming option on Nov. 3 that costs $6.99 a month as it scrambles to reverse a recent tide of customer losses.

Currently, Netflix offers ad-free options that range from $9.99 to $19.99 depending on how many users log in to the same account. The most popular service costs $15.49 in the US.

The new plan, dubbed “Basic with Ads,” is slated to launch Nov. 3 with ads that average 4 to 5 minutes per hour, Netflix said, noting that ads will be 15 to 30 seconds in length and will play before and during the programs.

Netflix seems serious about this and are rolling out in 12 different countries including the US. They are fast tracking this to beat Disney+ to the punch who is offering an ad-free option for $8/month starting in December.


Are people going to roll back their plans to accept advertising? It seems like an easy to way to get so annoyed. With every commercial that pops up in every show you watch, you'll have regret. I think for something like this really work, it has to be rolled out initially. Giving people the option to make your product less enjoyable seems like a desperate strategy.

That seems to be where we are with Netflix. For so long, they were the only real heavy hitter in the streaming marketplace but now with HBO Max and Disney+ in the marketplace as well as other options, Netflix doesn't seem as important as it once did. Factor in that they don't have a big franchise to build off. They'll have massive hits like Stranger Things, Tiger King, Squid Games or even currently with the Dahmer series but these successes come and go. They don't have an IP like Disney+ has with Star Wars and Marvel or even like HBO Max has with DC. 

Netflix has also been outclassed when it comes to movies loved by critics. Initially with movies like The irishman, Mank and Marriage Story, they put more effort in quality over quantity. That business model shifted and now they have much more original content but is it good? Netflix has lost a million subscribers from April-June alone. 

Which brings us to this decision today. Don't get me wrong. I do think offering more choices to customers is a good thing and we might be heading for some serious economic problems in the near future (especially if the Phillies win the World Series) so a cheaper option even with ads might be an option people choose. But are people cancelling Netflix because it's too expensive or it's just not worth having anymore?