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The big change coming to Netflix today

Tamika Seeto
·Finance Reporter
·2-min read
Netflix screen on TV.
Streaming giant Netflix has rolled out its cheaper, ad-supported subscription tier today. (Source: AAP)

Streaming giant Netflix is launching its ad-supported subscription plan today, with Aussies able to get a cheaper deal in return for sitting through ads.

The Basic with Ads plan costs $6.99 per month - $4 less than the next cheapest subscription plan currently on offer.

Aussies will have to put up with an average of four to five minutes of ads per hour, which will be 15 to 30 seconds in length and will play before and during shows and films.

The video quality will also be limited to 720p/HD and users won’t be able to download titles to watch offline later. A limited number of movies and TV shows won’t be available due to licensing restrictions, Netflix said.

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“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.”

People who are paying for basic, standard or premium subscription plans will not be impacted by the change, which comes after Netflix lost 200,000 subscriptions in the first quarter of this year.

Following Netflix’s announcement, Australian streaming service Binge also announced it would introduce ads in 2023. Binge is expected to put ads onto an existing subscription tier and they will be capped at four minutes per hour before and during TV shows and movies.

Password-sharing crackdown

Netflix will also start cracking down on password sharing in early 2023 and will start charging an extra fee for “extra users” who live outside your household.

Earlier this year, Netflix estimated 100 million households were password sharing and using accounts paid for by other people.

It follows the rollout of a ‘Profile Transfer’ feature, which allows users to move their individual viewer profile from one account to another.

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