Netflix’s new ad-supported plan: what it is and how it works

Netflix has long positioned its streaming service as a commercial-free alternative to cable, and has resisted calls to introduce advertising. Netflix is starting with a familiar approach to advertising and plans to adjust its offering over time.

The ad-supported service is scheduled to debut Nov. 3 as Netflix tries to reverse a drop in subscribers. It will cost $7 per month in the U.S., a 55% markdown from Netflix’s most popular $15.50-per-month plan, which is ad-free.

The new, lower-priced option will offer the same content as Netflix’s existing plans but will include ads.

Quick Summary

The new service is a good way for Netflix to try and reverse the drop in subscribers, but it remains to be seen if it will be successful. The low video quality and increased number of commercials may not be enough to lure people back, especially since there are other streaming services that offer similar content without ads.