Skip to main content

Netflix launches new low-cost tier — here’s how to get it

Netflix has launched its new low-cost subscription plan, Basic With Ads.

The new plan costs $7 a month, $3 less than the next cheapest plan, Basic, which costs $10 a month.

Eleven other countries also launched Basic With Ads this week, namely Australia, Brazil, Canada, France, Germany, Italy, Japan, South Korea, Mexico, Spain, and the UK.

“Basic With Ads” does what it says on the tin, that is, offers ads while you watch. The new plan offered by Netflix will show between four and five minutes of ads each hour, with each one running for up to 30 seconds. They’ll play before and during shows and movies, Netflix said.

But it should be noted that, besides the interruptions from advertisers, the new tier also comes with a number of limitations.

For example, streams are limited to 720p resolution, and content can only play on one device at a time, which is the same as the ad-free Basic tier.

But while you can download for offline viewing with the Basic, Standard, and Premium tiers, Basic With Ads does not allow this feature.

Also, some movies and shows will be missing from Netflix’s library due to licensing restrictions, though this could change if the streaming giant is able to agree on terms with its partners.

Netflix, which currently has 223 million subscribers globally, is hoping Basic With Ads will help to attract new customers and retain existing ones who are looking to save a few bucks in these challenging economic times.

“Basic with Ads is everything people love about Netflix, at a lower price, with a few ads in-between,” the company said on its website. “We’re confident that with Netflix starting at $6.99 a month, we now have a price and plan for every fan.”

One of Netflix’s main rivals, Disney+, is also introducing an ad-supported tier on December 8, costing $8 per month. Others already offer an add-supported tier; for example, Hulu’s costs $8 per month while Peacock charges $5.

How to get Basic With Ads

Log into your Netflix account and select “plan details” in Settings. Look for “change plan” and then select Basic With Ads from the four options. You’ll be put onto the new tier at the time of your next billing. New subscribers can simply select the Basic With Ads option when they sign up.

Editors' Recommendations

Trevor Mogg
Contributing Editor
Not so many moons ago, Trevor moved from one tea-loving island nation that drives on the left (Britain) to another (Japan)…
Netflix’s ad-supported tier will start with a big drawback
Netflix app icon on Apple TV.

Netflix first announced plans for an ad-supported version of its streaming service several months ago, though details about it have been scant.

But during an earnings call on Tuesday, Netflix co-CEO and chief content officer Ted Sarandos revealed that Netflix’s ad-based tier will not include all of its licensed content at launch.

Read more
Netflix is definitely adding a cheaper, ad-supported tier and the suspense is killing us
Netflix app icon on Apple TV.

Ever since the rumors emerged that Netflix was contemplating a cheaper, ad-supported tier for its video-streaming service, we've been holding our breath, waiting for the details to fully emerge. And while that still hasn't happened, we're now one step closer: Ted Sarandos, Netflix’s Co-CEO, confirmed that what was once an idea will soon be a reality.

"We [are] adding an ad tier; we’re not adding ads to Netflix as you know it today. We’re adding an ad tier for folks who say, ‘Hey, I want a lower price and I’ll watch ads,'" Sarandos told a crowd of attendees at the Cannes Lions advertising festival on June 23, according to The Hollywood Reporter.

Read more
Netflix considering ad-supported tier at lower price
Netflix Home Screen.

On the day that it reported the loss of subscribers for the first time in more than a decade, Netflix has revealed it is considering an ad-supported tier for a lower subscription fee.

Netflix co-founder and co-CEO Reed Hastings made the revelation during a conference call with investors on Tuesday, April 19.

Read more