Netflix confirms plans to launch cheaper service that plays ads - here's what we know

The ad-tier will be a completely new plan for users who are after a cheaper deal and are willing to watch adverts. Current subscribers will not be automatically moved onto the ad-plan, unless they actively choose to do so. 

Speaking at the Cannes Lions creative marketing festival last week, Ted Sarandos - Netflix's chief executive - said: “We're adding an ad-tier; we're not adding ads to Netflix as you know it today. We're adding an ad-tier for folks who say 'hey, I want a lower price and I'll watch ads.'"

Mr Sandros added that the new offering will be rolled out "sooner rather than later", but explained that the initial version will still be open to tweaks. He said: "What we do first will not be representative of what the product will ultimately be. What I want the product to be is better than TV."

A spokesperson for Netflix told us it is "still in the early days of deciding how to launch a lower priced, ad supported option and no decisions have been made". This means we don't know yet how much it will cost, whether the launch will impact the price of Netflix's existing tiers, whether adverts will be displayed on all movies and TV shows, or how frequently these will be seen. 

If you're after the cheapest subscription deal, see our Best streaming services guide for more info. 

Netflix recently upped the prices of its plans 

The news comes after the streaming service upped its prices just a few months ago. From March, Netflix subscribers saw their costs rise by up to £24 a year. Basic and standard plans rose by £1 a month, while the premium plan increased by £2 a month. 

If you're unhappy with the service, all Netflix plans can be cancelled at any time penalty-free without reason – so if you no longer want an account you can stop your membership by logging in and selecting "Cancel Membership" in the membership and billing section.

If you cancel midway through your billing cycle, you'll be able to carry on using your account until the next billing date. 

We've full info on ways to save on the streaming platform in our 19 Netflix Hacks guide.