Netflix to debut subscription with ads

Netflix announced a subscription option subsidised by ads will debut in November in a dozen countries as the streaming service strives to jumpstart growth. Basic with Ads subscriptions will be priced at US$6.99 in the United States, three dollars less than a basic option without ads, Netflix chief operating officer Greg Peters said in a briefing.

The ad-discounted tier, a first for Netflix, will roll out in Australia, Brazil, Britain, Canada, France, Germany, Italy, Japan, South Korea, Mexico, Spain and the United States.

Nearly all of the Netflix library will be available, with some offerings held back until licensing deals are renegotiated. Video ads will be from 15s to 30s long.

After long shunning advertising, Netflix pushed ahead as competition in the streaming television market intensifies and as consumers recoil from soaring inflation.

With the launch of cheaper, ad-supported subscriptions, Netflix and Disney+ are expected to bite into the revenue of traditional television channels.