The new plan with ads will cost just $6.99 per month.

*Updated on November 3, 2022:

After months of speculation, Netflix users now have a cheaper, ad-supported plan. Last spring, the online content provider announced it would be introducing ads to the platform in order to boost revenue and match plans offered by other providers.

The new plan is now available, as of today, November 3, and costs $6.99 a month, $3 less than the cheapest streaming plan that Netflix currently offers.

In the past couple of years, Netflix has been burdened by the high cost of production and falling subscription rates. After the company released lackluster earnings in April 2022, company executives decided to relent and introduce an ad-supported tier. The “Basic with Ads” plan will average about four to five minutes of ads per hour that will be 15 to 30 seconds long.

In addition to dealing with ads, subscribers that buy the basic plan will only be able to view content at 720p/HD and will not be able to download movies and shows to a device. Some movies and TV shows may not be available for viewing with the basic plan due to copyright issues. Netflix's “Basic with Ads” will initially be available in the United States and 11 other countries.

Netflix has also struggled with the sharing of passwords between households resulting in revenue loss. In April of last year, the company created an add-on for households in Central and South American countries, with a plan to extend the service worldwide. For about $3 a month, you can add a friend or family member to your account so they can share your service. Subscribers can add up to three households with the premium account and can drop or add those households at any time.