Netflix sets $7 monthly price for its ad-supported service

Oct 13, 2022, 12:23 PM | Updated: 1:06 pm
FILE - A logo for Netflix is seen on a remote control in Portland, Ore., on Aug. 13, 2020. Netflix ...

FILE - A logo for Netflix is seen on a remote control in Portland, Ore., on Aug. 13, 2020. Netflix will unveil the first version of its video streaming service with ads in November 2022, giving cost-conscious viewers a chance to watch most of its shows at a steep discount in exchange for putting up with commercial interruptions. (AP Photo/Jenny Kane, File)

(AP Photo/Jenny Kane, File)

SAN RAMON, Calif. (AP) — Netflix next month will unveil the first version of its video streaming service with ads, giving cost-conscious viewers a chance to watch most of its shows at a steep discount in exchange for putting up with commercial interruptions.

The ad-supported service is scheduled to debut Nov. 3 as Netflix tries to reverse a drop in subscribers. It will cost $7 per month in the U.S., a 55% markdown from Netflix’s most popular $15.50-per-month plan, which is ad-free.

Netflix’s ad-supported option will also be rolling out in Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, Spain and the U.K., according to a Thursday post by the company’s chief operating officer, Greg Peters.

Besides putting up with roughly four to five minutes of ads during each hour of viewing, Netflix subscribers who sign up for the cheaper service also won’t be able to download TV shows and movies to watch when their devices are offline. Peters also said a “limited” amount of programming available on the commercial-free service won’t be on the ad-supported version because of licensing issues.

Netflix’s 15-year-old streaming service has until now been commercial free, but the Los Gatos, California, company decided to head in a new direction six months ago after reporting its first loss in subscribers in more than a decade.

The customer erosion worsened a wrenching decline in its stock price that has wiped up more than $200 billion in shareholder wealth during the past 11 months. The shares rallied after Thursday’s announcement, but still have lost about two-thirds of their value since reaching their peak last November when the streaming service was still growing.

Through the first half of this year, Netflix lost 1.2 million subscribers, leaving it with nearly 221 million. Management in July predicted it would regain about 1 million of those subscribers during the summer months. The numbers for the July-September period are scheduled to be disclosed Tuesday.

Netflix is betting the low-priced option with ads will be particularly popular at a time that persistently high inflation is pressuring millions of households to curb their spending, particularly on discretionary items such as video streaming. The streaming market also has become crowded with tougher competition from the likes of Amazon, Apple and Walt Disney Co., which also is preparing to offer an ad-supported version of its service soon.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Associated Press

Bonds, Clemens left out of Hall again; McGriff elected

SAN DIEGO (AP) — Barry Bonds, Roger Clemens and Curt Schilling were passed over by a Baseball Hall of Fame committee that elected former big league slugger Fred McGriff to Cooperstown on Sunday. It was the first time that Bonds, Clemens and Schilling had faced a Hall committee since their 10th and final appearances on […]
19 hours ago
FILE - Capital murder defendant and former U.S. Border Patrol Juan David Ortiz looks around the cou...
Associated Press

Jurors hear ex-Border Patrol agent’s confession in killings

SAN ANTONIO (AP) — Jurors in the capital murder trial of a former U.S. Border Patrol agent have heard a taped interview in which he confesses to the 2018 killings of four sex workers in South Texas. If convicted of capital murder, Juan David Ortiz, 39, faces life in prison without parole because prosecutors are […]
19 hours ago
FILE - A Twitter logo hangs outside the company's San Francisco offices on Nov. 1, 2022. A top Euro...
Associated Press

As Musk is learning, content moderation is a messy job

Now that he’s back on Twitter, neo-Nazi Andrew Anglin wants somebody to explain the rules. Anglin, the founder of an infamous neo-Nazi website, was reinstated Thursday, one of many previously banned users to benefit from an amnesty granted by Twitter’s new owner Elon Musk. The next day, Musk banished Ye, the rapper formerly known as […]
19 hours ago
FILE - In this photo taken by an individual not employed by the Associated Press and obtained by th...
Associated Press

Iran morality police status unclear after ‘closure’ comment

CAIRO (AP) — An Iranian lawmaker said Sunday that Iran’s government is “paying attention to the people’s real demands,” state media reported, a day after a top official suggested that the country’s morality police whose conduct helped trigger months of protests has been shut down. The role of the morality police, which enforces veiling laws, […]
19 hours ago
Secretary of State Antony Blinken speaks at the J Street National Conference at the Omni Shoreham H...
Associated Press

Blinken vows US support for Israel despite unease over gov’t

WASHINGTON (AP) — Secretary of State Antony Blinken said Sunday the U.S. will not shrink from its unwavering support for Israel despite stark differences with Prime Minister-elect Benjamin Netanyahu and concerns the Biden administration may have about potential members of his incoming right-wing government. Speaking to a left-leaning group that some on the right accuse […]
19 hours ago
Associated Press

Farmer: Georgia dog injured saving sheep from coyote attack

DECATUR, Ga. (AP) — A Georgia sheepdog is recovering at home two days after killing a pack of coyotes that attacked his owner’s flock of sheep, farmer John Wierwiller said. Casper, a 20-month old Great Pyrenees from Decatur, fought off a pack of coyotes who were threatening Wierwiller’s sheep farm, he said. The fight lasted […]
19 hours ago

Sponsored Articles

...
Quantum Fiber

Stream 4K and more with powerful, high-speed fiber internet

Picking which streaming services to subscribe to are difficult choices, and there is no room for internet that cannot handle increased demands.
...
SCHWARTZ LASER EYE CENTER

Key dates for Arizona sports fans to look forward to this fall

Fall brings new beginnings in different ways for Arizona’s professional sports teams like the Cardinals and Coyotes.
...
Day & Night Air Conditioning, Heating and Plumbing

Ways to prevent clogged drains and what to do if you’re too late

While there are a variety of ways to prevent clogged drains, it's equally as important to know what to do when you're already too late.
Netflix sets $7 monthly price for its ad-supported service