From November 3rd, Netflix will broadcast adverts in the UK. The streaming giant has just announced the account pricing plan for its new tier system, which has been launched to help catalyse global growth.
After seeing its first quarterly decline in subscribers in more than a decade, Netflix is also reducing the price of its cheapest ad-free package. Prices will start from £4.99 a month in the UK. If you want to watch Netflix without ads, you’ll need to pay £6.99. Netflix Standard will cost £10.99, and Netflix Premium will cost £15.99.
The ad-supported service, known as Basic with Ads, will be launched in 12 countries on November 1st. Due to licensing restrictions with third parties, viewers will be unable to view a “limited” number of films and TV series with the new package. Netflix has said that it plans to rectify this.
5% to 10% of Netflix’s catalogue would be unavailable to subscribers of the Basic package. Users will also only be able to stream Netflix on one screen simultaneously. The multi-screen package – the most popular by far in the UK – begins at £10.99 a month. Download options will also be unavailable.
According to Greg Peters, Netflix won’t be impacted if subscribers decide to change to the new budget option, as the coupling of a monthly fee and advertising income will be “neutral to positive.”
Discussing the new plan, Peters said: “The launch could mean some of our existing members move off [more expensive] plans. “I definitely believe that a lower consumer-facing price with good incremental ad monetisation will enable us to grow membership and build a really significant incremental revenue and profit stream.”