By Sam Boughedda
Netflix (NASDAQ:NFLX) has announced its long-awaited ad-supported tier, which will be launched on November 3, the company said on Thursday.
The "Basic with Ads" subscription tier will be priced at $6.99 per month, $13 below its premium plan and below the Disney+ $7.99 ad-tier subscription. Netflix added that its ad-free plans will not be impacted and will stay the same price.
Basic with Ads will be available in 12 countries, including Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, Spain, the U.K. and the U.S.
The streaming giant stated there will be an average of 4 to 5 minutes of ads per hour, while a limited number of movies and TV shows won't be available due to licensing restrictions, which the company says it is working on. Each ad will play before, during and after shows and films and will be 15 or 30 seconds long.
Netflix had previously said its ad-supported tier would be available in early 2023.
"While it's still very early days, we're pleased with the interest from both consumers and the advertising community," Netflix said in its press release. "As we learn from and improve the experience, we expect to launch in more countries over time."
Netflix shares are up over 3% at the time of writing.