The firm is rolling out the less expensive offering to try to attract viewers.
Image source, Noh Juhan | NetflixNetflix is launching a new streaming option with adverts in November as it fights to keep viewers by cutting prices.
The offering will be available in 12 countries including the UK, US, Canada, Mexico and Australia.
The firm said it would charge £4.99 a month for the service in the UK, while it will cost $6.99 in the US.
Netflix has been losing customers as competition and cost of living pressures mount.
The company lost more than 1 million subscribers in the first half of this year. It is due to provide an update of that figure to investors next week.
Netflix’s move into advertising is a big change for the company, which pioneered the idea of subscription-based streaming.
But as more companies follow its footsteps, it has had a harder time retaining subscribers, especially as households concerned about the rising cost-of-living look for ways to cut back.
“We’re confident that … we now have a price and plan for every fan,” the company said in a press release.
“While it’s still very early days, we’re pleased with the interest from both consumers and the advertising community and couldn’t be more excited about what’s ahead.”
The company said it planned to roll out the offering to more countries over time.