Netflix Introduces Ad-Supported Subscription Option in Response to Decreasing User Base
Netflix is set to launch a new plan, the Basic with Ads, on November 3, priced at an affordable $6.99 per month. This plan offers viewers a more cost-effective way to access most of the Netflix library, with ad interruptions.
The Basic with Ads plan allows for one device to stream content at a time in high-definition video quality (up to 720p). However, a small portion of the Netflix library (around 1.87% or approximately 140 titles as of mid-2025) will be blocked and unavailable on this ad-supported tier.
In comparison, the ad-free Standard plan, priced at $17.99 per month, offers streaming on 2 devices simultaneously in Full HD, the ability to download content on 2 devices, and access to the entire Netflix library.
The Premium plan, costing $24.99 per month, provides ad-free streaming in up to 4K Ultra HD, streaming on 4 devices simultaneously, downloads on 6 devices, and additional features like spatial audio and the option to add up to two extra members with or without ads for a fee.
Netflix's decision to introduce an ad-supported plan comes as the company faces a decline in subscribers for the first time in over a decade this year. Reed Hastings, Netflix executive, stated that the company is looking at cheaper deals with ads due to pressure from streaming competitors and dwindling subscriber numbers.
It's worth noting that ads will not appear in any Netflix games. The Basic with Ads plan will include 15-30 second ads before and during shows and movies.
The release of the Basic with Ads plan also marks an improvement in the Basic plan, which currently costs $9.99 a month. The Basic plan will now offer HD streaming alongside the release of the Basic with Ads plan.
The Basic with Ads plan will be available in 12 countries, including the United States. Netflix's ad-free offer was once a significant part of its brand proposition, but the company plans to focus on viewer satisfaction instead of competing for ad revenue.
In May, Netflix imposed redundancies on over 150 workers, dozens of contractors, and part-time employees. At least 200,000 subscribers left Netflix in the first quarter of this year. The company's rival, Disney+, gained 14.4 million customers for the quarter concluded on June 30.
With the introduction of the Basic with Ads plan, Netflix aims to cater to budget-conscious users who don’t mind ads, offering a lower-cost option with some content restrictions, making it a suitable choice for those seeking a more affordable streaming experience.
The introduction of Netflix's Basic with Ads plan marks a shift in their strategy, as they aim to cater to budget-conscious users who don't mind ads. This lower-cost option offers HD streaming, coming as a significant improvement to the existing Basic plan, and includes 15-30 second ads before and during shows and movies.
Netflix's earnings from this ad-supported plan may contribute to their net worth, helping them compete in the ever-growing technology-driven film industry.
