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Netflix Plans to Launch $7-a-Month Streaming Plan With Advertising

  • The company hopes it can attract price-sensitive customers
  • Ads will run four to five minutes an hour in the new plan
Netflix Illustrations Ahead Of Earnings Figures
Photographer: Gabby Jones/Bloomberg
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Netflix Inc. will introduce an advertising-supported plan on Nov. 3, charging $7 a month for a subscription that the company bets will entice new budget-conscious customers and jumpstart growth.

The lower-priced streaming package will debut in the US and 11 other countries, including Japan, France and Brazil, Netflix said Thursday. It will include four to five minutes of commercials per hour and offer a lower video quality than higher-priced tiers. Some programs won’t be available because the company doesn’t have the rights to show them with commercials.