Despite the launches of new streaming apps including Apple TV+, HBO Max, Amazon Prime and Disney+, Netflix is still the most popular streaming platform in the world, with around 222 million subscribers globally.
But although it remains at the top spot, the streaming giant has been struggling recently as it was revealed in July that Netflix had reported a loss of 1 million subscribers during the second quarter of 2022, which was its second quarter with a loss of subscribers.
Netflix was able to revolutionise the television industry when it launched, with a new business model that provided a streaming service allowing users to binge watch TV series all at once and enjoy them without adverts.
While the streaming service has managed to stay ahead of the competition without showing ads during its TV shows or movies, this could be about to change as the company continues to struggle.
Here's everything you need to know about Netflix's new ad-supported tier.
Is Netflix going to have ads?
Netflix is reported to be launching a new ad-supported tier to the streaming platform in November.
The new tier will be cheaper than other types of Netflix subscriptions, but users will have to watch adverts.
Netflix co-CEO Ted Sarandos confirmed the news of a new ad-supported version in June during an interview in Cannes, explaining: "We’ve left a big customer segment off the table, which is people who say, ‘Hey, Netflix is too expensive for me and I don’t mind advertising,’
"We’re adding an ad tier for folks who say, ‘Hey, I want a lower price and I’ll watch ads.'"
The company had initially planned to start offering the new service in 2023, but it's now been reported by The Wall Street Journal that this has been brought forward to November 1 this year, in order to stay ahead of Disney+'s scheduled launch of their own ad-supported subscription tier in December.
According to sources, the new ad-plan will go live in countries including the UK, US, Canada, France and Germany and Netflix has reportedly been looking at a price of between $7 (£6.04) to $9 (£7.76) dollars for the service.
However, a spokesperson for Netflix has claimed that the company has not made any decisions about the price or launch date of the new tier yet.
Can you get rid of ads on Netflix?
Netflix is only set to be introducing the ads to its new cheaper subscription tier.
This means that users with higher-priced subscriptions will be able to stream shows ad free, with Ted confirming that they will continue to see "Netflix as you know it today".
If you choose to opt for the cheaper subscription, then you can get rid of the ads simply by switching to one of the more expensive options.
In the UK, there are three tiers that won't have adverts. This includes the following:
- Basic Tier — this costs £6.99 a month, has a 480p resolution and allows you to watch on one device
- Standard Tier — this costs £10.99 a month, has 1080p resolution and allows you to watch on two devices
- Premium Tier — this costs £15.99, has 4K+HDR resolution and allows you to watch on four devices