Netflix Launches Cheaper Plan With Ads After Subscribers Drop-Off

Netflix has announced a new cheaper plan “Basic with Ads”, after subscriptions plummet.

Costing about a third of what people are currently paying for the streaming service, the new plan at $6.99 a month will kick off in Australia on November 3.

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The cheaper alternative will have four to five minutes of ads per hour, with subscribers unable to download shows and movies to watch offline.

New releases will feature advertisements at the start of the stream, while television series and older films will have 15 or 30-second ads  before and during the viewing.

In addition, some movies and TV shows won’t be available on the cheaper plan.

“With the addition of our new plan at $6.99 a month, we’re really excited to be able to offer that wide range and offer and a price and plan for every Netflix fan,” Netflix chief operating officer Greg Peters said.

Despite a lockdown-boom, the 15-year-old streaming service reported losing 1.2 million subscribers in the first six-months of the year, forcing its hand into alternative revenue streams.

The platform has also faced more competition as other paid and free-to-air streaming services have hit the market, including Amazon, Apple, Disney, ABC's iview.

Australia is one of twelve countries rolling out the new Basic with Ads in November, including the US and the UK.

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