Netflix brings in a cheaper option…with ads

It’s the dawn of a new era. After months of shadowy deliberation, Netflix has announced a new ad-funded payment tier.

The “Basic with Ads” option will only cost customers $6.99 a month but will feature four to five minutes of commercials before and during Netflix content, with most individual ads only lasting a maximum of thirty seconds. Users will only be able to watch on one device and will be limited to 720p resolution. The catalog available to customers will also be stripped back slightly due to licensing issues.

The arrival of Basic with Ads on November 3rd means there are now four tiers available for Netflix users. It marks a significant turnaround for the company, which has always maintained that ads are in opposition to its original vision. But a rough financial year and plateauing subscriber rates have prompted radical changes for the streaming service.