A cheaper Netflix is coming – with ads

Would you pay less for Netflix if it means you must endure adverts to watch your favourite films and TV shows?

That’s what bosses at the streaming giant are counting on when they release the new ad-support model in the UK in early November, as well as in 11 other countries including the US and Australia.

The firm said it would charge £4.99 a month for the service in the UK, a nice discount from its lowest ad-free tier currently, which costs £6.99.

"We’re confident that […] we now have a price and plan for every fan," Netflix said.

The company said those on the ad-supported plans should expect to see around four to five minutes of ads per hour streamed, with each ad lasting 15 to 30 seconds. Whether it sticks to these limits remains to be seen.

Ads will be limited on some newly released titles in order to preserve the cinematic experience. Five to ten per cent of content won’t be available on the new ad-supported plan, supposedly due to licensing restrictions, company executives said.

Viewers on the new, cheaper plan also won’t be able to download titles, and can only watch films or shows at up to 720p, like on the basic plan. This makes the idea less attractive to commuters or parents who are desperate to keep kids entertained on flights. Perish the thought that they might have to speak to their own children.

The company said it will ask users for their age and gender information when they sign up for the new tier, in order to better target ads, which sounds ominous for personal privacy.

Jeremi Gorman, Netflix’s president of worldwide advertising, insisted this is nothing to worry about. “The privacy of our members is critically important to us and this is why Netflix data is only going to be used to support advertising experiences on Netflix and will not be used to build profiles or ad targeting elsewhere,” he said.

To be sure, Netflix isn’t the only streaming giant introducing ads in order to cut its subscription fees, with Disney also rolling out an ad-supported service in the US in December.

The launch comes as Netflix announced it had lost almost a million subscribers in the second quarter of 2022. With people reviewing their personal spending due to soaring inflation worldwide and the cost of living crisis, streaming services feel like an easy saving to make and so cheaper, ad-supported, tariffs could be a smart idea.