More streaming services have been appearing year after year and Netflix is still the top streaming service among them. But they are having a hard time holding that place lately.

Netflix has announced a new plan for their service called Basic with Ads. According to GameSpot, the ad-based tier is meant for those who want a subscription at a lower cost, and it will be launched on November 3rd.

More About 'Basic with Ads'

• The Basic with Ads plan will cost $6.99, as opposed to their Standard and Premium plan, which are $15.49 and $19.99, respectively. 
• The subscribers can expect 4-5 minutes worth of ads per hour, ranging from 15 to 20 seconds per ad, which will play in the beginning and during programming.
• Subscribers will have their video quality limited to 720p, while other plans offer 1080p up to Ultra HD 4K. 
• Furthermore, some movies and TV show titles will not be available on the subscription plan due to licensing restrictions. Netflix has not yet announced which those are.
• Among other limitations will be the ability to download. Viewers who will get the Basic with Ads plan will also be limited to one device at a time when streaming.
• The plan will be available in the US, Canada, Australia, Brazil, France, Italy, Germany, Japan, Korea, Mexico, Spain, and the UK.

Of course, if you want an ad-free streaming experience, you can still subscribe to Netflix's Basic, Standard, and Premium tiers. It will not be affected by the new plan proposed by the streaming service.

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Why is Netflix Adding a New Tier?

Netflix CEO, Reed Hastings, has been saying for years that Netflix is advertising-free, as mentioned in CNN, which is why it was a shock to some when Basic with Ads was announced. 

This could be due to the fact that Netflix has been losing subscribers after a long time of steady increase. Netflix has lost billions in market cap, and there has been a workforce reduction that cost hundreds of employees their jobs.

The purpose of the new tier is to encourage more people to subscribe to the streaming service or for other subscribers to come back. Basic with Ads could reel in $8.5 billion per year through subscription and ad revenue by 2027, according to Ampere Analytics.

Alternatives for Netflix

• Amazon Prime Video. If you don't have an Amazon Prime membership, you can still get the plan for $8.99 a month. The streaming service offers 26,000 titles. Although, there are certain titles you still have to buy or rent.

• HBO Max. It has more than 2.500 titles which include "Euphoria" and "Hosue of the Dragon," among other famous titles. For $14.99, you may stream ad-free in 4K UHD. 

• Peacock. It has more than 60,00 hours of content, which you can watch ad-free for $9.99. If you don't mind an ad or two, you can even watch for free.

• Hulu. It has more than 3,000 titles, and you can have access to Disney+ and ESPN+, depending on the plan. Though, some tiers still have ads like the base plan. A subscription will give you access to original content like "How I Met Your Father" and "Handmaid's Tale."

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