The basic subscription service will allow users to watch their favorite TV shows and Netflix Originals, but streamers will need to get used to ads.
The lowest cost subscription service, Basic with Ads, is set to launch in the U.S. from November 3, for $6.99 per month, $3 less than its basic subscription plan.
But, is the ad-supported subscription service truly value for money? Newsweek compared the top streaming services on the market to see how to get the best value for your hard-earned cash.
What Do You Get With a Netflix Ad-Subscription?
Netflix’s new ad-supported subscription will be available in the U.S., Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, Spain, and the U.K., from 9 p.m. PT on November 3.
The Basic with Ads tier is expected to be limited to 720p/HD streaming, which is the same as Netflix’s Basic plans, meaning you will still get the same quality video as non-ad subscribers.
As for the type and length of commercials you could be shown with this subscription plan, Netflix says you should expect between 4 and 5 minutes for every hour of content you watch.
The entertainment firm also said users can expect ads to be played before and during your TV shows and films, at around 15 or 30 seconds in length.
Unfortunately, due to licensing restrictions, Netflix also revealed some movies and TV shows won’t be available on this subscription plan, and users will not be able to download titles to watch offline.
How Does This Ad-Subscription Compare?
Netflix is not the only entertainment service to offer ad-supported streaming from 2023.
Other streaming services like Peacock and Paramount+ are already offering ad-supported tiers, with Disney+ also reporting that it plans to roll out a cheaper plan in December.
Netflix, however, has sought to undercut its main rival streaming platform, by offering its ad-service for $1 less per month.
Disney+ announced it was starting its ad-service from December 8 for $7.99 a month— which is the current price for Disney+ without the ads. The ad-free subscription will be called Premium and is expected to rise to $10.99 a month.
Meanwhile, Netflix has kept its prices lower despite reporting a significant decline in its subscriber count for 2022.
In April, the company reported that it had lost 200,000 subscribers in the first quarter of 2022—the first big loss in over a decade. This decline was followed by another 1 million loss in the second quarter of this year.
How Can I Save on My Entertainment Subscriptions?
With so many subscription services on the market, it can seem overwhelming when it comes to balancing entertainment and rising costs.
But there are things you can do to get the most out of your entertainment subscriptions, and even save money. First, you should double check you are on the right subscription plan for your needs.
If you find you are the only one watching content on your account, you could be wasting up to $5 a month with the premium packages, or you could switch to an ad-based subscription to save even more on your annual entertainment bill.
Next, you should consider how much you get for your investment. If you find you are only watching one or two shows on Netflix, but instead are fully invested in your Prime TV shows, it could be worth canceling your Netflix for a few months.
You should also aim to alternate your subscription services if you can. The benefit of these monthly subscriptions is that you can cancel, or pause your payments at any time.
However, if you switched out your entertainment subscription every three months, you would only pay $104.88 for the entire year of content, saving you around three-quarters on your annual bills.
You should also take advantage of any free trials on offer when you subscribe to a new streaming platform, or pay for an annual membership if you really can’t live without your streams. For example, Disney+ offers an annual subscription for $79.99 per year, essentially giving you two months for free for committing.
