Netflix's ad-supported plan to launch in November

A new ad-supported Netflix subscription will be made available across 12 countries, as the streaming service launches another attempt to improve average revenue per customer.

A new ad-supported Netflix subscription will be made available across 12 countries, as the streaming service launches another attempt to improve average revenue per customer.

Netflix will charge $6.99 a month for a new ad-backed streaming tier to debut next month, releasing the plan just one month before Disney+'s ad-supported plan, and for a dollar less. 

The new Basic with Ads plan will be available across 12 counties - Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, Spain, the UK and the US - and will launch in Australia on November 4. 

"Basic with Ads is everything people love about Netflix at a lower price, with a few ads in between," Greg Peters, Netflix’s chief operating officer, said. "Basic with Ads also represents an exciting opportunity for advertisers – the chance to reach a diverse audience, including younger viewers who increasingly don’t watch linear TV, in a premium environment with a seamless, high-resolution ad experience."

The launch, six months after Netflix said it would enter the ad business, is an indication of the company's desperate need to acquire new customers and improve average revenue per user. As The Oz reported at the time, Netflix ended June with about 220.7 million subscribers after haemorrhaging nearly 1 million over the previous quarter.

Meanwhile, Disney plans to raise the price of its basic plan from US$7.99 to $10.99, and those who don’t wish to pay more will start seeing ads. The subscription will initially be rolled out in the US in December, but is expected to be released to other counties in the months following.

At launch, Netflix ads will be 15 or 30 seconds in length and will play before and during shows and movies.

"We’re confident that with Netflix starting at $6.99 per month, we now have a price and plan for every fan," 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."