Netflix ad-based subscription model starts in Australia today

Streaming giant Netflix will roll out a new deal for customers on Friday after months of mass subscription losses.

Streaming giant Netflix will launch a new ad-based subscription model in Australia on Friday that will offer consumers a cheaper monthly rate in exchange for ads playing before and during shows.

The Basic with Ads offer will cost $6.99 per month, $4 less than the cheapest subscription model on offer, and will feature five minutes of ads per hour of viewing.

The offer started in Canada and Mexico on November 1 and, in addition to Australia, will be rolled out in the US, the UK, France, Italy, Germany Japan and South Korea.

The ads will be 15 or 30 seconds in length, while the company said it would offer advertisers “broad targeting capabilities” by country and genre.

Netflix is launching a new ad-based subscription service in Australia on Friday. Picture: Robyn Beck / AFP

About 10 per cent of Netflix programs will not have any ads, with the original deals being struck prior to the company’s interest in advertising.

Netflix chief operating officer and chief product officer Greg Peters said the early reaction from advertisers and consumers was encouraging.

“We’re confident that with Netflix starting at $6.99 a month, we now have a price and plan for every fan,” Mr Peters said.

“While it's still very early days, we’re pleased with the interest from both consumers and the advertising community, and couldn’t be more excited about what’s ahead.

“As we learn from and improve the experience, we expect to launch in more countries over time.”

In October, after two quarters of declining subscriptions, Netflix reported it had acquired 2.4 million subscriptions in the third quarter of 2022, sending the company’s shares skyrocketing.