The time has come: Netflix's new ad-based tier is officially arriving today in the United States. After years of refusing to offer an ad-supported tier, Netflix changed its mind (in the wake of dwindling subscriber numbers) and the less expensive subscription membership is now available widely after a test phase.
There are several key things to know about the new plan, which is called Netflix Basic with Ads. Here's a rundown that covers the price, key information about what you get and don't get, and more.
A chart posted on Netflix's website provides a breakdown of the company's various plans, including Basic with Ads ($7/month), Basic ($10/month), Standard ($15.50/month), and Premium ($20/month).
Now that Basic with Ads has gone live, we've found there are more than 250 TV shows and films that are not available on the ad-based plan.
17 Great Movies And Shows Not Available On Netflix Basic With Ads Tier
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Some of Netflix's big-ticket films and TV series, like Glass Onion: A Knives Out Mystery, will only display a pre-roll ad and won't pause for an ad break mid-movie.
"We'll try to preserve that sort of cinematic model there," Netflix's Greg Peters told Deadline.
Ads on Netflix may be personalized, the company said, so you might see ads based on the genre of content you're watching or related to the information you've previously shared with Netflix. Upon signing up for Netflix Basic with Ads or converting an existing membership, the streaming company will ask for your date of birth and gender. Netflix said it uses this information, along with "general location information" from your IP address, to serve you tailored ads.
According to Ampere Analytics, Netflix's new ad-based tier could bring in $8.5 billion a year by 2027 through subscription fees and ad revenue.
Netflix's new ad-based tier sees the company follow suit from the likes of HBO Max, Peacock, and others that have ad-supported membership options. Disney+, meanwhile, will launch its own ad-based tier in December, priced at $8/month.