Netflix Will Soon Cost Less Than Disney+

As many Disney+ subscribers and Disney fans know, on December 8, Disney will launch an ad-supported tier of Disney+. The new ad-supported tier will cost subscribers $7.99 per month and the ad-free tier — currently, the only tier available — will see the price go from $7.99 per month all the way up to $10.99 per month.

Credit: Disney

While that is a big price jump — the largest the streaming platform has seen — Disney CEO Bob Chapek believes that they still aren’t charging enough. That means, that it is more likely than not that Disney+ will see another price increase sometime next year.

Disney would not be the first streaming service to offer both an ad-supported tier and an ad-free tier. However, they are one of the largest. And now, another streaming giant will also be launching an ad-supported tier, and this one will be cheaper for subscribers than Disney+.

Credit: Disney

According to a report from Deadline, Netflix will launch its ad-supported tier — called Netflix Basic With Ads — in the US on November 3, and it will only cost subscribers $6.99 per month.

Per Deadline:

The company said its new subscription tier, Basic with Ads, will cost $6.99 a month and will launch November 3 in the U.S., more than a month before Disney’s December 8 rollout of the ad-supported version of Disney+. Canada and Mexico will get the new plan November 1 and two days later it will go live in the U.S., Australia, Brazil, France, Germany, Italy, Japan, Korea, and the UK, with Spain following on November 10. In the U.S., the entry-level price will be less than half the cost of the most popular tier, Standard, which is $15.49 a month.

In a blog post, Netflix COO Greg Peters said there will be four to five minutes of ads per hour, with both series and feature films being interrupted by spots. 

Jeremi Gorman, head of worldwide advertising for Netflix, said inventory is nearly sold-out, with several hundred advertisers in the mix. Asked during a Zoom call with members of the press about how much advertisers paid, she declined to offer specifics. As to categories, political will be a notable no-fly zone given how meaningfully they have surged in linear TV in recent election cycles, along with others like guns, smoking or plugs for any products and services Netflix deems illegitimate.

Credit: Netflix

The streaming giant also shared that newer movies will most likely only see commercials at the beginning of the film, as a way to keep the “cinematic model”. However, films that have been on the streamer for a while will have ads sprinkled in.

Again, Netflix’s new tier — Netflix Basic With Ads tier — will launch in the US on November 3.