Initially, the "Basic with Ads" plan will be available in 12 countries: Germany, Australia, Brazil, Canada, South Korea, Spain, United States, France, Italy, Japan, Mexico and the United Kingdom.
"We are confident that now that Netflix is available from €5.49 a month, we have a price and plan for all fans. While this is just the beginning, there has been tremendous interest from both consumers and the advertising community, and we couldn't be happier. As we learn and improve, we will roll out this plan in more countries," said a Netflix spokesperson.
For Greg Peters, it is a "magnificent opportunity" for advertising advertisers, "to be able to reach a diverse audience - including younger viewers, who increasingly watch less traditional television - in a great environment to see ads in high definition".
There will be an average of 4-5 minutes of ads per hour and advertisers will be able to prevent their advertising from appearing on content that may be incompatible with their brand, in the case of sex, nudity or graphic violence.
In July, Netflix announced a partnership with Microsoft to develop its new low-cost, ad-supported subscription model.
The decision to create a low-cost subscription plan comes after Netflix's loss of competitiveness in the streaming platform market resulted in a slowdown in the company's growth rate and led to a reduction in its workforce.
Netflix lost nearly a million subscribers (970,000 accounts) during the second quarter of 2022, during which it made a net profit of $1,441 million (about €1,472 million).
The company also highlighted that the transition from traditional television to 'streaming' is getting faster.
"In the United States, it has surpassed open and cable television", he noted.
In August, the Walt Disney Company also announced that later this year it’s most popular streaming platform, Disney+, will offer an ad-supported plan and an ad-free option at a higher price in the United States.
Netflix and less bill
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