Netflix launches its cheapest ad tier plan in several markets

Netflix has finally launched its newest plan, which is now its cheapest subscription option. The American video-streaming giant activated its ad tier in about 12 countries this week.

The debut of this ad tier option has been described by Netflix officials as a “major milestone in the streaming business” since many companies are supporting this new subscription level. The “Basic With Adverts” plan is now available in South Korea, the United States, the U.K., Brazil, France, Italy, Germany, Australia, and Japan.

On Nov. 10, Netflix will also activate the ad tier in Spain while it is said to be already running in Mexico, Spain, and Canada. While this is the cheapest subscription option, prices will differ based on the country. In the U.S., this will cost the subscribers $6.99 per month, and this is available starting Thursday, Nov. 3.

In the U.K., the new plan is priced at £4.99 per month starting Friday, Nov. 4. “Basic with Adverts - a plan with everything people love about Netflix, Netflix’s president of worldwide advertising, Jeremi Gorman, said in a statement. “At a lower price, with a few adverts in between - complements our existing plans and provides consumers with more choices to access the films and series people are currently talking about.”

The rate in the U.S. is cheaper than Disney’s upcoming, similar ad-based tier, which is priced at $7.99 a month. Disney Plus is rolling this out on Dec. 8.

In any case, Gorman said that Netflix could not have made this ad-supported option available without its advertising partner Microsoft and other firms from across the world. With the ads, subscribers can expect to see 15 to 30 seconds advertisements featuring well-known brands, including McDonald’s General Motors, LVMH, Heinz, L’Oreal, Subway, Heinz, Carnival Cruises, and Target stores. In the U.K., the ads will include brands such as Lidl, Ernest Jones, T-Mobile, HSBC, and GoCompare.

Finally, Yahoo Finance reported that the commercials would be shown at the start of a movie or show while other programs may feature them in the middle.

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