Today is launch day with its freshly coined ad-supported plan for the U.S., UK, France, Germany, Italy, Australia, Japan, Korea and Brazil. Just two days ago, the cheaper tier was launched in Canada and Mexico as part of its entry into markets.

The streamer will now compete head-to-head with other major streaming services offering ad-supported options, such as Hulu, HBO Max, Paramount+ and Peacock, among others.

How much will Netflix's Basic with Ads cost?
For U.S. subscribers, the ad-supported plan is $6.99 a month for Netflix. This is $13 less than the Premium plan from Netflix and almost $9 less than the Standard plan, and $3 less than the Basic plan.

The company said it would not raise the prices of its other tiers like Disney+ will do when it launches its ad plan next month. Netflix rolled out Basic with Ads a month before Disney+ launches its ad-supported plan, which will cost $1 more than Netflix's plan.
How many ads will be in the new plan?
There will be four to five minutes of adverts in an hour that airs both before and during their movie and TV shows. The ad times will be 15 or 30 seconds. Conveniently, new Netflix titles receive only pre-roll advert airing, so they tend to be interrupted less by those older titles, that include midroll adverts together with pre-roll.

What are some disadvantages of this new plan?
Similar to its ad-free Basic plan, Basic with Ads also allows for 720p HD quality, and users are restricted to stream from only one device. The subscribers of the ad-supported tier will not be able to download content to devices for offline viewing. In addition, the company said the subscribers will not have access to around 5% to 10% of Netflix's content catalog because of licensing restrictions.

Netflix undercuts Disney+ with launch of its $7/month ad-supported plan early next month

It will be interesting to see how the new plan works for Netflix. The company will find out how many new consumers will subscribe to the cheaper tier and how many subscribers will switch plans to decrease their monthly bill-even if that means sitting through ads. JP Morgan analyst Doug Anmuth projects Netflix will add 7.5 million subscribers to its ad-supported tier in 2023 in the U.S. and Canada, generating approximately $600 million in advertising sales.

Netflix has been trying hard to get more revenue and subscribers since it suffered two consecutive bad quarters. During the first and second quarters of this year, Netflix lost 1.2 million subscribers worldwide. Still, the company did have a victory in Q3: It added 2.41 million paid subscribers.

It means, however that launching an ad tier on its own will not cure all of Netflix's ills. This is why the firm decided to monetize password-sharing on the service beginning next year with an "extra members" feature that imposes a fee on members that wish to create sub accounts. The streaming service released a profile transfer feature allowing account members to migrate separately to other accounts without giving up custom settings.