Netflix will charge $6.99 a month for new ad-supported tier starting Nov. 3 in U.S.

The Netflix logo is seen on a TV remote controller, in this illustration taken January 20, 2022.

The new tier will cost $6.99 per month and will be available in the US on November 3.

The "Basic with ads" tier won't allow users to download movies and TV series, and will include an average of four to five minutes of commercials per hour. Licensing restrictions will limit the number of TV series and movies that can be watched.

Commercials will be 15 or 30 seconds in length and will play before and during the streaming service. It will be possible for brands to prevent ads from appearing on content they find objectionable. Digital ad ratings will be used by the ratings company to help advertisers understand reach.

For the first time in the company's history, it is launching a less expensive service with commercials. The growth of subscribers has stopped recently. In the first two quarters of the year, the company lost subscribers and expects to lose more in the third. The company has over 200 million subscribers around the world.

According to Chief Operating Officer Greg Peters, the company will reveal subscriber forecasts for the advertising service after the market closes on Tuesday. The two companies are working on an advertising-supported service. The company said in a conference call that it has almost sold out its inventory and will have hundreds of advertisers at launch.

When Disney+'s ad tier launches in December, it will be less expensive than the $6.99 per month price of the streaming service. The price is $9.99 a month.

The company's revenue will be affected by customers who switch to the ad-supported service from the ad-free basic plan, according to Peters.

It's thought that the company will get at least $3 a month for each user.

Peters said during the conference call that they wanted to offer consumers choice.

The quality of the video that can be seen in the advertising tier will be more in line with the standard plan. The company's basic plan has a resolution of 720p.

Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, the U.K. and the United State will be the first countries to see the advertising tier. The launch of Spain will take place on November 10.

The streaming wars took a toll on the company.