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Netflix has introduced a new streaming plan with ads, charging $7 a month for a subscription, which will launch on November 3.
Using the new plan, users will get four to five minutes of advertising per hour and a lower quality video than more expensive plans. However, some programmes will not be available because the company does not have the rights to show them with advertisements.
The subscription will first launch in Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, Spain, the UK and the US.
Although Netflix has long positioned its streaming service without advertising, a slowdown in subscriber growth and a decline in the company's stock have forced the company to introduce a cheaper version of the service to generate additional revenue.
Netflix said the ads will run for 15 to 30 seconds and will be shown before and during TV shows and movies, the company said. In addition, the company will collect user data to allow sponsors to target their audiences by genre and help them prevent children from viewing inappropriate content. In addition, it will also ensure that viewers do not see the same adverts too often by using frequency limitation.
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,
Chief Operating Officer Greg Peters said.
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