Netflix has revealed more details about its new ad-supported plan, with the cheaper option becoming available within weeks.
The streaming service’s budget “basic with ads” plan will feature four to five minutes of unskippable ads every hour hour, Netflix revealed on Friday.
It will also include lack of access to a “limited” number of shows and movies.
The basic subscription with the streaming giant will cost $6.99 a month in Australia and will launch on November 3.
News of the low-priced option comes after the streaming giant suffered its first downturn in subscriptions in more than a decade earlier this year, losing 1.2 million subscribers.
The company’s new direction will provide ads of 15 to 30 seconds in length that will play before and during programs.
New releases will feature ads only at the start to preserve the cinematic experience, Netflix said.
“We’re confident that … we now have a price and plan for every fan,” the company said in a statement.
“While it’s still very early days, we’re pleased with the interest from both consumers and the advertising community and couldn’t be more excited about what’s ahead.”
Netflix also said ads would be targeted towards specific audiences as part of the plan, which will cost rough 30 per cent less than the streaming service’s current entry-level service.
The current cheapest subscription with Netflix in Australia is $10.99 a month.
“To help advertisers reach the right audience and ensure our ads are more relevant for consumers, we’ll offer broad targeting capabilities by country and genre (e.g. action, drama, romance, sci-fi),” Netflix said.
“Advertisers will also be able to prevent their ads from appearing on content that might be inconsistent with their brand (e.g. sex, nudity or graphic violence)”.
Users of the cheaper plan will also have no option to download shows and movies to watch offline.
Customers who remain on their existing plans will not face any advertising.
Netflix’s budget option will also be rolled out in the US, Britain, Brazil, Canada, France, Germany, Italy, Japan, South Korea, Mexico and Spain.
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