Netflix (NFLX) is launching a new lower priced ad-supported streaming tier in Canada on
November 1 of this year.
The movie and television streaming company said Canadians will pay $5.99 a month for its new
ad-supported tier. That price is much less than Netflix's ad-free tiers, which now range in price
from $9.99 to $20.99 per month in Canada.
In exchange for the subscription savings, Netflix said viewers will see an average of four to five
minutes of advertisements per hour when streaming movies and TV programs.
Pricing for Netflix’s existing ad-free plans is not being impacted by the new advertisement
streaming tier, the company said.
Netflix had long said it would never place advertisements on its streaming platform. However,
the company reversed course as it looks for new revenue streams in the face of growing
competition.
Earlier this year, the Disney+ (DIS) streaming service surpassed Netflix in number of
subscriptions.
Netflix said that not all movies and TV shows in its library will be available to Canadians on the
cheaper ad-supported streaming tier, and subscribers won't have the option to download
content for remote viewing.
In the U.S., several of Netflix's competitors have already launched ad-supported tiers that
include commercial breaks in exchange for lower subscription fees. Disney+ has announced
plans to begin offering its own ad-supported streaming tier in coming months.
Netflix said it plans to rollout the advertising tier in Canada two days before most other major
markets, including the U.S., which will receive the ad-supported tier on November 3.
Year-to-date, Netflix’s stock is down 61% at $232.51 U.S. per share.
