Netflix with ads: What we know so far

What was once unthinkable is now actually happening: Netflix is rolling out a cheaper streaming plan that includes ads.

Many of the details have yet to be fleshed out, but Netflix seems determined to spin up its ad-supported plan in a matter of months.

So, how much will Netflix with ads cost, and when will it arrive? Here’s what we know.

Why is Netflix launching an ad-supported plan?

Netflix lost subscribers during the first and second quarters of 2022, ending a decade of growth and sending Netflix’s stock price into a tailspin. And while Netflix is ubiquitous in North America, it’s having trouble gaining traction in the rest of the world, where it’s facing tough competition from cheaper streaming services.

Meanwhile, Netflix’s rapidly growing competitors, including HBO Max, Disney+, Paramount+, Peacock, and Hulu, all have–or are preparing to roll out–their own cheaper ad-supported plans, all of which currently undercut Netflix’s cheapest ad-free plans.

So while it wasn’t all that long ago that Netflix executives scoffed at the idea of cheaper ad-supported plans, the company abruptly changed course once it became clear that its once seemingly unstoppable growth had stalled.

Will Netflix with ads offer the same content as ad-free Netflix?

Nope, not everything. Netflix licenses many of its movies and TV shows from third parties, and those agreements would likely need to be renegotiated before Netflix could insert ads into those videos for streaming.

According to Netflix co-CEO Ted Sarandos, the “vast majority of what people watch on Netflix” would be available “today” on an ad-supported offering, but “not all of it.” That said, Netflix is in discussions with its providers to “clear some additional content.”

Incidentally, it’s almost certain that Netflix’s original shows, such as Stranger Things, Ozark, and The Witcher, would be available for ad-supported streaming on day one.

How many commercial breaks will Netflix with ads have?

It’s not yet clear how many advertisements Netflix subscribers will have to sit through on the “with ads” plan. Indeed, the ad-supported version of Netflix is still in its “very early days,” and Netflix only announced its technology partner in the effort–Microsoft–in July.

That said, it’s a safe bet that Netflix won’t unload more ads per hour than its competitors do. For example, the “with ads” version of HBO Max averages about four minutes an hour, while Peacock tops out at about five minutes per hour. So look for something in the four- to five-minute-per-hour ballpark.

Will Netflix with ads offer 4K HDR video resolution?

Probably not, but we’ll see. Currently, only Netflix’s priciest plan–Premium–offers 4K UHD streaming. The Standard Netflix plan includes 1080p streaming, while the Basic plan only offers 720p streaming.

Most other streamers only deliver 4K HDR streams to their ad-free subscribers, although that’s not a universal policy; Paramount+, for one, does allow ad-supported subscribers to stream in 4K.

Will ad-supported Netflix offer downloads for offline viewing?

One of the best perks offered by the big streamers is the ability to download their videos for offline viewing, perfect for binge-watching your favorite series during a long flight or when you don’t want to bust through your data cap.

That said, most ad-supported streaming offerings don’t allow for video downloads, and that includes Paramount+, which is otherwise fairly liberal with its ad-supported features. We’re pretty confident that Netflix with ads won’t offer downloads either, but Netflix hasn’t confirmed that detail yet.

Where will Netflix with ads launch first?

Netflix hasn’t detailed which specific regions will be the first to get the streamer’s ad-supported tier. The company has said that it will “likely start in a handful of markets where advertising spend is significant,” and then “listen and learn.”

It would be surprising if the U.S. wasn’t among the first countries to get Netflix’s ad-supported plan, but again, we don’t know for sure yet.

When will Netflix’s ad-supported plan arrive?

The latest word is that Netflix is looking to launch its “with ads” offering in “early 2023.”

There had been chatter earlier this year that Netflix wanted to roll out its ad-supported tier by the end of 2022, but recent statements from the company have contradicted those rumors.

How much will Netflix with ads cost?

Well, that’s the big question, and the short answer is we don’t know yet.

What we do know is that Basic, Netflix’s least expensive ad-free plan, costs $9.99 a month (in the U.S., anyway), so we’re assuming the ad-supported tier will be cheaper. But by how much?

For some context, Paramount+ and Peacock Premium (which, confusingly, is ad-supported, versus the ad-free Peacock Premium Plus) each cost $4.99 a month, while ad-supported Hulu costs $6/month. HBO Max with ads goes for $10 a month, making it something of an outlier.