Netflix is rolling out advertisements from today for its new lower-cost service in Australia.
The “Basic with Ads” plan will cost viewers $6.99 a month.
The platform includes four to five minutes of ads for every hour of streaming.
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People who are currently paying for basic, standard and premium plans will not be affected.
The basic plan without ads is $10.99 in Australia. Standard is $16.99 and Premium is $22.99.
Video quality on the new plan will be up to 720p/HD, the same as the existing basic plan.
Users will not be able to download movies, only stream them.
A statement from Netflix chief operating officer and chief product officer Greg Peters said “a limited number of movies and TV shows won’t be available due to licensing restrictions”.
“In short, Basic with Ads is everything people love about Netflix at a lower price, with a few ads in between,” Peters said.
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“We’re confident that with Netflix starting at $6.99 per month, we now have a price and plan for every fan.”
He did not reveal which titles currently on Netflix will not be available.
The statement noted streaming has now surpassed free-to-air and pay TV in the US.
“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 statement read.
“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.”
The plan is also being launched in Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, Spain, the UK and the US.
Netflix expects to launch the plan in other countries “over time”.
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