The new Netflix ad-supported tier is finally launching in September. On Thursday, the streaming company announced it plans to implement its ad version on November 3 for $6.99 per month. 

Netflix’s ad-supported tier will join the company’s three ad-free services, which consists of a basic plan for $9.99, the standard plan for $15.49 and the premium plan for $19.99. The new basic plan with ads will feature about four to five minutes of commercials per hour. 

These ads will last between 15 and 30 seconds, and will play before and during the shows and movies. The company stated that it will not play policial or policy ads, as well as gun or smoking related propaganda. 

About 11 countries will have access to the new Netflix ad-supported tier, including Australia, Canada, France, Germany, South Korea and the United Kingdom. The company said that 5% to 10% of its content will not feature on the tier initially due to licensing restrictions. People who subscribe to the ad plan will also not be able to download tv shows and movies.

This decision to include an ad-supported tier plan marks a big change for Netflix. The streaming giant has always embraced the idea of offering an ad-free streaming service to its clients. In April, co-founder and CEO Reed Hastings stated that he was against the complexities of advertising and in favor of the simplicity of a single subscription.

But he admits that as much as he enjoys that idea, he’s an even bigger fan of giving consumers a choice. So allowing new subscribers (or existing ones) who would like to pay less for the service and are tolerant to advertising makes a lot of sense to the company. 

It appears that more viewers are accepting ads on their streaming services if it means they get to save money. Forrester conducted a survey last December in which 44% of respondents said they would be okay with an ad-supported tier service if it meant paying less for it. 

Netflix hopes that ad revenue from its new ad-supported tier will offset the possible decline caused by lower subscription prices. The idea behind the new plan is to also encourage more people to sign up for the streaming service. 

Other streaming services are currently offering ad-supported tiers for lower monthly rates as well. At Hulu, subscribers have the option of a $7.99 monthly plan with ads, and a $4.99 monthly plan without them. 

HBO Max has a similar ad-supported tier at $9.99 a month, and an ad-free plan for $14.99 that allows users to download programs to watch offline. Peacock also provides the option for ad-free or an ad-supported tier subscription. 

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