Netflix, but cheaper: all about 'Basic with Ads'

Netflix had already said it would come up with an alternative plan to the one we all have. Now, it announces that starting in November, twelve countries will have the option to get a cheaper Netflix subscription.

The Basic Plan with Ads costs $6.99 in the United States, while its 'normal' plan costs $9.99.

How can it be so low, you might wonder? Well, it will have advertising. Hence its name: 'Basic with Ads.'

From November 1 (Mexico and Canada) to November 3 (Germany, Australia, Brazil, South Korea, United States, France, Italy, Japan, and the UK), and November 10 (Spain), Netflix is launching its Basic Plan with Ads.

By offering these new rates, Netflix is going into competition with other streaming platforms, its leadership says. CPO Greg Peters revealed the details of the 'Basic' plan at a press conference.

This is not him, by the way; here we see Chris Hemsworth in the Netflix movie 'Spiderhead.'

Greg Peters also said that regular rates will stay the same. Subscribers will not see their conditions change unless they choose to take another plan than the one they have.

To make an informed choice for a lower-priced plan, customers will of course want to know: what difference does the Basic plan make?

To begin with, whoever takes advantage of this new plan will have to watch an average of 4 to 5 minutes of advertising for every hour of viewing.

These ads will appear at the beginning of a program but also during playback. They will have a duration of 15 to 30 seconds per ad.

What's more: the Basic Plan with Ads excludes a number of shows and movies. They cannot (yet) be watched in the Basic Plan because of licensing restrictions.

Greg Peters has confirmed that Netflix is working on correcting this, as the unavailability of certain programs is something that can turn off millions of potential subscribers.

In addition, 'Basic without Ads' will not allow the downloading of content for offline viewing. It will be able in HD (High Definition), however.

Netflix says its ads will be adapted to the public and the content so that it is as relevant to viewers as possible. Of course, that means it will be using your viewing data to determine the best ad.

Greg Peters said that Netflix had an agreement with 'DoubleVerify' and 'Integral Ad Science' to "verify the level of display and the validity of the traffic of our ads." This mechanism to measure traffic and check the impact of the advertising should be launched in 2023.

In the meantime, advertisers will also have the possibility of preventing their products from appearing along with certain content that they consider incompatible with their brand.

Image: 'Dahmer - Monster,' Netflix

Netflix is clearly trying to get ahead of Disney Plus, which launches its rate with ads on December 8. The Streaming War is getting tougher.

The Basic Plan with Ads seeks to get more subscribers to Netflix, following the example of Hulu, a pioneer in subscriptions with advertising.