This will be the Netflix plan with ads: price, countries, arrival date, characteristics and differences

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New York (CNN Business) --

Netflix on Thursday unveiled its "Basic with Ads" subscription tier, its long-awaited ad-supported subscription plan.

Here's everything you need to know about the

giant's new service .

The new level will cost US$6.99 a month in the United States and 99 pesos in Mexico.

The service will be available from November 3 in the United States, Canada, Australia, Brazil, France, Italy, Germany, Japan, Korea, Mexico, Spain and the United Kingdom.

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The company said "current plans and members will not be affected" and that "Basic with ads complements our current Basic, Standard and Premium plans without ads."

How the ad-supported plan will work

The new option will feature much of the catalog available on Netflix's $9.99 per month Basic plan, but will include an average of four to five minutes of ads per hour.

Those ads will be 15 or 30 seconds long and will play before and during TV series and movies.

advertising

Netflix said it will offer extensive country and gender targeting capabilities to help "advertisers reach the right audience, and ensure our ads are more relevant to consumers."

"Advertisers will also be able to prevent their ads from appearing on content that may be inconsistent with their brand (such as sex, nudity or graphic violence)," Netflix said.

The company said it will work with Nielsen in the United States in 2023 "to enable advertisers to understand how Netflix can reach their target audience."

"While it's still early days, we're pleased with the interest from both consumers and the advertising community, and we couldn't be more excited about what's to come," Netflix said.

"As we learn and improve the experience, we hope to launch it in more countries over time."

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Netflix's Policy Change

The debut of the ad-supported subscription plan is a momentous moment in Netflix's 25-year history.

Netflix CEO Reed Hastings said in April that the company was open to adding ads to the service, shocking the media and advertising industries as Hastings had been adamant for years about not putting ads on the service. the platform.

"We ... are ad-free," Netflix said in a letter to shareholders in 2019. "That remains a deep part of our brand proposition."

But after a nightmare 2022, the platform can no longer stick to that approach.

In April, Netflix revealed that it had lost subscribers for the first time in more than a decade.

Following that news, stocks plummeted and the company lost billions in market capitalization, laid off hundreds of employees, and raised questions about the future of the platform, casting doubt on the viability of the entire streaming market.

In July, Netflix announced that it will partner with Microsoft to improve the sales and technology of this new subscription plan.

Ultimately, Netflix needs more revenue, and ads are one way to get it.

This doesn't mean all subscribers have to watch ads, as existing plans will remain ad-free, but now you'll be able to choose between a cheaper ad-supported plan and a

one .

In short, the Netflix of the future will be different from the one users know.

Netflix