Netflix Nov. 3 officially launched its much-hyped ad-supported subscription streaming VOD option across 12 territories, including the United States.
Priced at $6.99 ($5.99 Canadian), the “Basic with Ads” service option offers subscribers content with video resolution limited to 720p/HD (both basic with ads and basic without ads plans); average of 4 to 5 minutes of ads per hour, and no ability to download titles. A limited number of movies and TV shows won’t be available due to licensing restrictions.
Tiffany & Co.’s ad featuring Beyoncé was the first ad to ever run on the ad-supported service in Canada on Nov. 1, and subscribers in 12 countries can expect to see ads from GM, L’Oreal, McDonald’s, LVMH, Subway, Target, Heinz and Carnival Cruises, among others.
“Basic with Ads is everything people love about Netflix, at a lower price, with a few ads in-between,” Greg Peters, chief operating officer and chief product officer, wrote in a statement last month. Netflix launched the ad-supported option just six months after first announcing it publicly.
The streamer’s current basic plan without ads costs $9.99 monthly, with the standard ad-free plan priced at $15.49, and the premium option priced at $19.99. The streamer still offers its legacy by-mail DVD rentals, priced at $9.99 for one disc out at a time; $14.99 for two discs, and $19.99 for three discs rented concurrently.
Rival Disney+ is set to launch its lower-priced ($6.99) ad-supported SVOD option on Dec. 8.