Netflix Canada to offer a cheaper plan — you'll just have to watch ads

Netflix is giving Canadian viewers the option of a cheaper monthly subscription plan — as long as they're willing to sit through commercial breaks.

The streaming giant says it has marked Nov. 1 to launch its new ad-supported streaming tier in Canada for $5.99 per month.

The price is significantly less than Netflix's ad-free plans, which start at $9.99 and go as high as $20.99 a month.

In exchange for the savings, Netflix says subscribers will sit through an average of four to five minutes of ads per hour to be played before and during their TV shows and films.

WATCH | Dipping subscriber count pushes Netflix to explore ads, limit password-sharing: 

Netflix explores ads, crackdown on password sharing as subscribers fall

11 months ago

Duration 1:57

Streaming giant Netflix is considering cheaper subscriptions with commercials and a crackdown on password sharing between households after recording a steep drop in subscribers.

However, not everything in the Netflix library will be available on the ad tier, and subscribers won't have the option to download titles for remote viewing.

Netflix says the pricing for its existing plans will not be affected by the introduction of the ad tier.

Battle for viewers

The company's new streaming option comes as the service looks to attract cost-conscious customers and find a new revenue stream from advertisers who it says will have access to "younger viewers who increasingly don't watch linear TV."

In the United States, several of Netflix's competitors have already launched ad-supported tiers that trade off occasional commercial breaks for a lower subscription price.

HBO Max, Peacock and Paramount Plus are among the companies that have the option stateside, while Disney Plus has outlined plans to begin offering its own version in the coming months.

Netflix is rolling out the advertising tier in Canada two days before most other major markets. It will introduce the option in countries that include the United States, Brazil, France and the United Kingdom on Nov. 3. In the United States, the service will cost $6.99 US — $1 less than Disney Plus's similar plan, and $3 less than HBO Max.