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Netflix Charges $7 Per Month For Its Advertisement-Supported Service

Netflix Charges $7 Per Month

Next month, Netflix will launch the first version of its ad-supported video streaming service, allowing frugal fans the chance to watch the majority of its series at a significant discount in exchange for putting up with interruptions from advertising. On August 13, 2020, remote control in Portland, Oregon, displays the Netflix logo.

Netflix ad-Supported services

The service will launch on November 3 and will be supported by advertisements as Netflix attempts to stem a decline in customers. It will cost $7 per month in the United States, a 55% discount from Netflix’s most popular $15.50 per month ad-free plan.

Greg Peters, the company’s chief operations officer, said on Thursday that Netflix’s ad-supported option would also be launching in Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, Spain, and the U.K.

In addition to having to endure four to five minutes of advertisements for every hour of viewing, Netflix members who choose the less expensive option won’t be able to download T.V. episodes and movies to watch when their devices are offline. Peters added that a “small” portion of the programming now available on the commercial-free service wouldn’t be available on the ad-supported version due to licensing constraints.

Until now, Netflix’s 15-year-old streaming service has been devoid of advertisements, but the Los Gatos, California-based firm decided to change course six months ago after announcing its first decline in members in more than a decade.

The painful stock price decrease that has destroyed more than $200 billion in shareholder capital over the past 11 months was made worse by the erosion of customers. The shares increased after Thursday’s revelation, but since they peaked in November of last year when the streaming service was still expanding, they have lost approximately two-thirds of their value.

With approximately 221 million users after losing 1.2 million during the first half of this year, Netflix. In July, management forecasted it would get back around 1 million subscribers over the summer. On Tuesday, the figures for July through September are expected to be released.


American-run Netflix, Inc. is a streaming and production company based in Los Gatos, California. It offered a movie library and was founded in 1997 by Reed Hastings and Marc Randolph in Scotts Valley, California. In addition to its works, Netflix also distributes television programs under the label “Netflix Originals.”

Two hundred twenty-two million were Netflix members as of September 2022, with 73.3 million living in the United States and Canada, 73.0 million in Europe, the Middle East, and Africa, 39.6 million in Latin America, and 34.8 million in the Asia-Pacific area. Except for Mainland China, Syria, North Korea, and Russia, it is accessible everywhere. Netflix is a member of the Motion Picture Association and has played a significant role in the distribution of independent movies (MPA).

Various organizations and individuals have criticized Netflix as it has grown in popularity and commercial reach in the 2010s.

Since the company’s hastily overturned decision to split its DVD rental and streaming services, customers have grumbled about price increases in Netflix’s offerings. As Netflix’s streaming output rose, there were requests for it to restrict access to graphic material and include viewer advisories for problems like sensationalism and the promotion of pseudoscience. Disability rights activists have also attacked Netflix’s content for having poor captioning.

Netflix referred to the new tier as “pro-consumer” during a press conference where it unveiled it. It also revealed how its internal content tagging teams were charged with locating natural breakpoints in various episodes and movies to insert adverts.

As reported, Netflix’s ad tier comes in response to a sudden slump for the streaming service, which earlier this year lost over 1 million subscribers in the U.S. and Canada and saw a decline in its stock price as a result of investor concerns that its period of rapid growth has come to an end.

Netflix Competition

Due to consistently high inflation, Netflix is wagering that the inexpensive option with advertisements will be trendy when millions of households are pressured to reduce their spending, especially on discretionary products like video streaming. As a result of increased competition from companies like Amazon, Apple, and Walt Disney Co., which is also getting ready to launch an ad-supported version of its service soon, the streaming industry has also grown more cluttered.