In an effort to retain customers, Netflix is introducing a less expensive streaming alternative with advertisements in November.
The plan will be accessible in 12 nations, including the US, Canada, Australia, the UK, and Mexico.
According to the company, the service will cost $6.99 per month in the US and £4.99 per month in the UK.
Due to increased competition and cost of living constraints, Netflix has been losing customers.
Over 1 million members were lost by the corporation in the first half of this year. Investors will receive an update on that number the following week.
Netflix, which invented the concept of subscription-based streaming, is making a significant change with its entry into advertising.
However, it has had a difficult time keeping members as more entertainment businesses launch online streaming services, particularly as households look for methods to save money due to the rising cost of living.
The cheapest package in the UK without advertisements begins at £6.99 per month.
The business claimed in a press statement that it “now has a price and plan for every enthusiast.”
According to the corporation, subscribers to the new service can anticipate seeing four to five minutes of advertisements every hour on average.
Additionally, some movies and TV shows won’t be accessible because of licencing limitations.
The business declared its intention to gradually broaden the product to new nations.
Many of Netflix’s rivals already do so or intend to combine streaming with advertisements.
For instance, Disney, for instance, plans to launch an advertisement-supported service in the US in December. The monthly price for the plan will be $7.99.
This a reflection of the interest from advertisers in reaching younger audiences who are increasingly tuning out of traditional television, according to Jeremi Gorman, president of worldwide advertising at Netflix, who claimed that the company had almost sold out all the available ad time for the debut.
In an effort to target advertisements, Netflix is requesting the gender and birthdate of users who sign up for the ad program.