On November 3, Netflix rolled out its “Basic with ads” plan, an ad-supported version of the streamer’s services at a lower price, however, despite the simplicity behind the concept, the company’s new product left many wondering, how does Netflix with ads work?

Netflix’s decision came after the company experienced a drop in subscribers and growth, thus prompting it to launch Basic with ads, in response to all its competitors, namely Hulu, HBO Max, and now Disney Plus offering ad-supported subscriptions. So how does Netflix’s Basic with ads really stack up against the competition, and what is there anything to watch out for in the fine print?

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How Much is Netflix With Ads?

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The make or break point for any budget-minded option is pricing, so Netflix decided to set the subscription for Netflix with ads at $6.99 a month. That is less than half of Netflix’s most popular “Standard” plan, currently priced at $15.49, though not much cheaper than the “Basic” service that goes for $9.99 monthly.

More interestingly, Netflix’s with Ads plans is the cheapest major streaming service on the market, as Hulu with ads costs $7.99 and HBO Max is $9.99, while the new Disney Plus Basic that came out last week will still cost users $7.99, same as before. Overall, Netflix with Ads fulfills its promise to price-sensitive customers.

How Does Netflix with Ads Work?

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Again, on the face of it, the premise behind Netflix with Ads is very straightforward, with a few exceptions. Users can expect to find around 4 minutes worth of advertising per hour of viewing time on Netflix, with each commercial break ranging from 30 to 90 seconds, although the 90-second run of ads is quite rare. This level of advertising is pretty close to HBO Max's ad dose, but much lower than Hulu with ads, which tend to feature twice that amount.

As for the ads themselves, each one individually might last for 15, 30, 60, or 75 seconds within any given ad break. The good news is that ad placement will be mostly seamless, or at least as much as it can be, with interruptions being strategically placed where ads would normally be on regular TV. Nevertheless, not all ads or content are the same.

For example, an account’s Kids' profile will be ad-free on Netflix with Ads, as will most animated or family-friendly titles geared to children, which often don't feature any ads whatsoever. Sadly, it’s currently impossible to know which shows lucked out, but the likes of Peppa Pig or Avatar: The Last Airbender do not have ads of any kind.

Finally, choosing Basic with Ads subscription does come with a hidden price, as certain top shows on Netflix will remain locked away from the budget tier with a red padlock icon prompting them to upgrade their plan. Content limitations derive from licensing restrictions, and while there is no official compilation of restricted shows for Netflix with Ads, at launch shows like The Crown, Breaking Bad or Peaky Blinders were unavailable.

Is Netflix With Ads Worth It?

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This is the most important question about Netflix’s Basic with ads, albeit, with the subscription depending on each person or family’s budget, the answer is: it depends. For $3 less, Netflix with Ads is almost a carbon copy of the $9.99 Basic Plan — watch on one device at a time in HD (720p) quality, plus unlimited Netflix games, however, it does have its downsides.

Netflix with Ads does not allow users to download content to their devices’ apps, whereas Netflix Basic does. Depending on the user, and on which device they actually enjoy most of their content, that convenient feature alone could very well be worth the extra $3, especially when traveling or commuting.

Even more so, while the idea of having ads placed in the middle of binge-watching sessions is pretty easy to process for most customers, limiting movies and TV shows is not. The worst part about the content limitations is how little information Netflix provides upfront to new or downgrading subscribers as to what they’ll be missing out on.

Three way split gird of promo shots from The Good Place, New Girl, and Arrested Development.

Sure, some of Netflix’s best new series such as Wednesday or Ozark are available, yet, conversely, movies like Paddington and Uncharted, or even the first Netflix original hit, House of Cards, are not. All these inconveniences do add up, and the difference between Netflix with Ads or the ad-free plan comes down to $36 on a yearly basis. At that point, some users might consider pausing their Basic subscription for a couple of months a year is a more convenient way to save money on their Netflix account.

More puzzlingly, if Netflix with Ads is a direct response to account sharing, the service launched only in Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, Spain, the United Kingdom, and the United States. These can be considered Netflix’s biggest and most profitable markets, yet account sharing is far more popular in other regions.

Under current circumstances, Netflix with Ads at $6.99, is still a perfectly viable alternative to enjoy the streamer's programming, though if possible, most users will probably enjoy Netflix more by paying the $9.99 Basic plan.

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