Netflix launches £4.99 package with adverts to lure cost-conscious streamers

theguardian.com:

Netflix is to broadcast adverts for the first time from 3 November, as the streaming giant launches a new bargain priced £4.99 monthly package in a bid to reignite its stalled global growth.

The move will see the world’s biggest streaming company, which has this year seen its first quarterly decline in subscribers in more than a decade, offer a significant reduction to its cheapest existing ad-free package which is £6.99 a month in the UK.

Netflix, which is launching the ad-supported service called Basic with Adverts in 12 countries on 3 November, said that a “limited” number of films and TV series will not be available to viewers with the new subscription package due to licensing restrictions with third parties.

But the company hopes to rectify this. “We’re working on [it],” said Greg Peters, Netflix’s chief operating officer, in a blog post on Thursday. There will also be no ability to download titles.

Netflix’s accelerated launch – the company originally said that it intended to unveil its new ad-supported tier next year – means it beats rival Disney+, which is debuting its own package before the end of the year.

The decision to introduce ads, which Netflix has been steadfastly against since launching its streaming service in 2007, comes as its growth has all but flatlined at a global base of 221 million subscribers.

The company has seen its market value slump by 65% over the last year, after reporting two consecutive quarters of subscriber decline, and has forecast it will add just 1 million more globally when it reports third-quarter results next week.

“In short, Basic with Adverts is everything people love about Netflix, at a lower price, with a few adverts in between,” said Peters. “We now have a price plan for every