'It's just like watching TV, it's just the fun of the commercials.'
Netlix Inc updated information about the service's subscription plan with its ad display at the $7 price tag in an effort to recapture consumer interest.
The 'Basic with Ads' service subscription plan is offered at a price of $6.99 and can be accessed in 12 countries including the United States (US), Brazil, Germany, Japan and South Korea from November.
Users who choose the plan, which is $3 cheaper than the Basic Plan, will see 4 to 5 minute ads every hour and movies will be limited.
However, Chief Operating Officer (COO) Greg Peters said between 5% and 10% of Netflix programs will not support ad display due to licensing issues.
He also pointed out that the act of introducing such ads can definitely help the company to be competitive again competing with Disney+ and HBO Max which also offer advertising.
According to analyst notes Cowen & Co, Netflix's actions may contradict the original vision but it will offer more options to consumers who are concerned about the price.
Additionally, Netflix is targeting a user growth of 13.3 million for its new plan.
As of this writing, Netflix shares are trading 5.27% higher at $232.51 with a market capitalization of $103.40 billion.
