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Netflix launches ads in Australia for $7 a month

A person watching Netflix on a laptop.
Netflix will introduce the new subscription tier in November. (Source: Getty)

Netflix will launch a new subscription tier that includes ads, for $6.99 a month.

The Basic with Ads plan will be available in Australia from November 4 this year and will give users access to all the same Netflix content - they’ll just have to put up with pesky ads.

Netflix said all existing ad-free tiers would not be impacted.

Here’s everything you need to know about the new plan.

What will you get with the new Netflix plan?

Basics with Ads users will still get access to the same content but the video quality will be limited to 720p.

Users can also expect an average of four to five minutes of ads per hour.

A limited number of movies and TV shows won’t be available, due to licensing restrictions, which Netflix said it was working on.

Additionally, users won’t be able to download titles to watch offline later.

“In short, Basic with Ads is everything people love about Netflix, at a lower price, with a few ads in between,” Netflix said.

“We’re confident that with Netflix starting at $6.99 a month, we now have a price and plan for every fan.

“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.”

Why did Netflix introduce ads?

Netflix announced at the beginning of this year that it would introduce an ad tier after it lost 200,000 subscribers in the first quarter and an expected 2 million to follow.

During an interview at the Cannes Lions festival in May, Netflix co-CEO Ted Sarandos confirmed the ad-supported subscription plan would roll out.

"We've left a big customer segment off the table, which is people who say: 'Hey, Netflix is too expensive for me and I don't mind advertising'," Sarandos said.

"We're adding an ad tier for folks who say: 'Hey, I want a lower price and I'll watch ads'."

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