Netflix has announced “Basic with Ads”, a new, cheaper subscription plan that will introduce adverts for the first time since it launched as a streaming service in 2007. Basic with Ads is being rolled out in 12 countries around the world in November, including Australia, the US and the UK.
When is it being rolled out and how much will it cost?
Basic with Ads will launch in Canada and Mexico on 1 November, then Australia, Brazil, Canada, France, Germany, Italy, Japan, Mexico, South Korea, Spain, the UK and the US on 3 November.
Basic with Ads will cost $7/month in Australia, £4.99 in the UK and $6.99 in the US. For comparison, the current Basic plan – Netflix’s cheapest tier right now – costs A$10.99, £6.99 and US$9.99 each month.
I already subscribe to Netflix. If I switch to Basic With Ads, will everything else stay the same?
No. Netflix’s COO, Greg Peters, has previously said that a “limited number of movies and TV shows won’t be available due to licensing restrictions”. Netflix estimates between 5% and 10% of titles won’t be available on Basic With Ads to start with depending on what country you are in, and they will work to reduce that over time.
Basic With Ads won’t allow users to download titles for offline viewing. Users will also only be able stream Netflix on one screen at a time, like the existing Basic plan.
However, if you are currently on Netflix’s Basic plan, you will actually gain something without switching to the new plan: video quality of up to 720p HD. This feature was previously only available on the Standard (A$16.99 a month) or Premium tiers (A$22.99 a month).
Does this mean I have to watch adverts?
No. If you are a subscriber already, you won’t need to switch to the new tier, though you can if you’d like to pay less and stomach some adverts. Other tiers will remain the same cost (for now).
If you do want to switch, and you currently pay for your Netflix subscription through a third party, it is worth checking with your provider if Basic with Ads will be made available to you, as the plan won’t be offered by everyone.
What kinds of ads will I expect to see and when?
Adverts will run from 15 to 30 seconds and will play before and during shows and films. You won’t be able to skip them, but there will be frequency caps to make sure viewers don’t see the same ads too often.
Political advertising, weapons, tobacco and “get rich quick schemes” will not be allowed on Netflix. Brands will also be able to stop their ads from showing on content that contains sex, nudity or graphic violence.
Why are they doing this?
Netflix believes they will be able to attract new users with a cheaper tier. The streaming company saw its first quarterly decline in subscribers in more than a decade in April; almost immediately, Netflix executives announced plans to introduce adverts. In July, Netflix reported its second quarter of loss of subscribers, losing around 1 million. The company’s market value has slumped by 65% over the last year.
Netflix believes any losses from existing subscribers switching from more expensive plans for Basic With Ads will be offset by the new advertising income they receive.
How does it compare to other streaming services in Australia?
Disney+
Cost: $11.99/month or $119.99/year
Is it going up? Disney+ cost $8.99/month when it first launched in Australia, and it will likely increase again when they introduce their ad plan, Disney+Basic, most likely in 2023.
Free trial? No.
Ads? Disney+Basic, which will have adverts, will launch in the US on 8 December. It will cost US$7.99/month, while the ad-free plan will increase from US$7.99 to US$10.99/month. Disney+Basic will roll out internationally in 2023.
Stan
Cost: $10/month for Basic, $16/month for Standard, $21/month for Premium. (Plus $10/month for Stan Sports.)
Is it going up? Stan’s Basic plan has remained $10/month since it launched in 2015. But Standard has increased from $14/month to $16/month, while Premium has gone up from $17/month to $21/month.
Free trial? 30 days.
Ads? Not yet.
Binge
Cost: $10/month for Basic, $16/month for Standard, $18/month for Premium.
Is it going up? Only Standard plans have increased since Binge launched, going from $14/month to $16/month.
Free trial? 14 days.
Ads? Not yet.
Apple TV+
Cost: $7.99/month.
Is it going up? Not yet.
Free trial? Seven days, or three months if you buy an eligible Apple product and redeem the offer within 90 days.
Ads? Not yet.
Paramount+
Cost: $8.99/month or $89.99/year
Is it going up? Not yet.
Free trial? Seven days.
Ads? The US has a US$4.99/month plan that includes ads and less content. This has not been introduced in Australia yet.
Amazon Prime Video
Cost: $6.99/month
Is it going up? Not yet.
Free trial? 30 days.
Ads? You will sometimes see ads for Prime shows and television while streaming content on Prime that comes from a third-party. However, Amazon has said it has no plans for an ad tier any time soon.
