Netflix is rolling out an ad-supported plan for $6.99 a month.
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00:00Netflix announced its new ad-supported tier will roll out on November 3rd and cost $6.99 per month.
00:06The Basic with Ads tier comes in at nearly half the price of the company's standard plan of $15.49 per month.
00:13It will include approximately 4-5 minutes of commercials each hour and won't give users the ability to download content.
00:19A limited number of movies and TV shows will initially be unavailable due to licensing restrictions.
00:24Screen resolution will decrease to 720p with the new cost-effective tier.
00:28Other streaming services such as Hulu and HBO Max have already introduced ad-supported tiers.
00:33Netflix's decision comes after years of resistance to the idea.
00:36In 2020, CEO Reed Hastings stated that the company was not interested in supporting ads.
00:41However, after back-to-back quarters of subscriber losses and with growing competition, they've decided to offer an ad-based option.