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Netflix will charge $6.99 per month for a new ad-supported plan beginning Nov. 3 in the U.S.

Netflix will charge $6.99 per month for its new advertising-supported tier, which the organization will carry out in the U.S. on Nov. 3.

Netflix’s “Basic with ads” level will incorporate an average of four to five minutes of commercials every hour and won’t enable clients to download movies and TV series. A set number of television series and movies will at first be inaccessible due to licensing limitations.

Ads will be 15 or 30 seconds in length and will play previously and during Netflix’s content. Organizations will can keep advertisements from showing up on content they consider unsavory or unsuitable. To assist advertisers with understanding its reach, ratings organization Nielsen will use its standard digital audience measurement, Digital Ad Ratings, in the U.S. starting in 2023.

Netflix is launching its first more affordable plan with commercials after years of rejecting the concept. The move comes as subscriber development has leveled in recent quarters. Netflix lost subscribers in the initial two quarters this year and hopes to add only 1 million clients in the third quarter. The organization has around 221 million subscribers internationally, which makes it the biggest worldwide streaming service.

Netflix will declare its third-quarter earnings after the market closes Tuesday and plans to disclose new subscriber and revenue forecasts, as per Chief Operating Officer Greg Peters. Netflix is banding together with Microsoft for its advertising-supported service. The streaming organization will have many advertisers at launch and has almost sold out its inventory, the organization said in a media conference call.

At first there will be no advertising within kids programming and new films. Older movies might have mid-roll advertising.

Pricing below Disney

Netflix’s $6.99 per month pricing is more affordable than ad-supported Disney+ and Hulu, which will both be $7.99 each month when Disney+’s ad level launches in December. HBO Max with advertisements is $9.99 per month.

Netflix priced the service so any client who changes to the ad-supported service from the ad-free basic plan will have a “neutral to positive” impact on the organization’s income, as indicated by Peters.

That proposes Netflix will get something like $3 every month per client in advertising revenue.

“We want to offer consumers choice and figure out what the best offering is for them,” Peters said during the conference call.

Video resolution for Netflix’s advertising level will be 720p as opposed to 1080p, the nature of Netflix’s standard plan that costs $15.49 per month. The organization’s basic plan without advertising is $9.99 each month and furthermore has 720p resolution.

The advertising level will at first be accessible in Canada and Mexico on Nov. 1, followed by Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, the U.K. and the US on Nov. 3. Spain will launch on Nov. 10.

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