By Michael Liedtke, Technology Writer
SAN RAMON, Calif. (AP) --Netflix next month will unveil the first version of its video streaming service with ads, giving cost-conscious viewers a chance to watch most of its shows at a steep discount in exchange for putting up with commercial interruptions.
The ad-supported service is scheduled to debut Nov. 3 as Netflix tries to reverse a drop in subscribers. It will cost $7 per month in the U.S., a 55% markdown from Netflix's most popular $15.50-per-month plan, which is ad-free.
Netflix's ad-supported option will also be rolling out in Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, Spain and the U.K., according to a Thursday post by the company's chief operating officer, Greg Peters.
Besides putting up with roughly four to five minutes of ads during each hour of viewing, Netflix subscribers who sign up for the cheaper service also won't be able to download TV shows and movies to watch when their devices are offline. Peters also said a "limited" amount of programming available on the commercial-free service won't be on the ad-supported version because of licensing issues.
Netflix's 15-year-old streaming service has until now been commercial free, but the Los Gatos, California, company decided to head in a new direction six months ago after reporting its first loss in subscribers in more than a decade.
The customer erosion worsened a wrenching decline in its stock price that has wiped up more than $200 billion in shareholder wealth during the past 11 months. The shares rallied after Thursday's announcement, but still have lost about two-thirds of their value since reaching their peak last November when the streaming service was still growing.
Through the first half of this year, Netflix lost 1.2 million subscribers, leaving it with nearly 221 million. Management in July predicted it would regain about 1 million of those subscribers during the summer months. The numbers for the July-September period are scheduled to be disclosed Tuesday.
Netflix is betting the low-priced option with ads will be particularly popular at a time that persistently high inflation is pressuring millions of households to curb their spending, particularly on discretionary items such as video streaming. The streaming market also has become crowded with tougher competition from the likes of Amazon, Apple and Walt Disney Co., which also is preparing to offer an ad-supported version of its service soon.
Kendrick Lamar will headline the 2025 Super Bowl halftime show
Kendrick Lamar will pop out on the NFL's biggest stage next year: The Grammy winner will headline the Apple Music Super Bowl Halftime Show in New Orleans.
The NFL, Apple Music and Roc Nation announced Sunday that Lamar would lead the halftime festivities from the Caesars Superdome on Feb. 9. The rap megastar, who has won 17 Grammys, said he's looking forward to bringing hip-hop to the NFL's championship game, where he performed as a guest artist with Dr. Dre and Snoop Dogg in 2022.
"Rap music is still the most impactful genre to date," Lamar said in a statement. "And I'll be there to remind the world why. They got the right one."
Lamar has experienced massive success since his debut album "good kid, m.A.A.d city" in 2012. Since then, he's accumulated 17 Grammy wins and became the first non-classical, non-jazz musician to win a Pulitzer Prize for his 2017 album "DAMN."
The rapper's latest album "Mr. Morale & The Big Steppers," was released in 2022. He was featured on the song "Like That" with Future and Metro Boomin on a track that spent three weeks at No. 1 on the Billboard Hot 100 this year. He also garnered another hit with "Not Like Us."
Roc Nation founder Jay-Z called Lamar a "once-in-a-generation" artist and performer.
"His deep love for hip-hop and culture informs his artistic vision," Jay-Z said. "He has an unparalleled ability to define and influence culture globally. Kendrick's work transcends music, and his impact will be felt for years to come."
Roc Nation and Emmy-winning producer Jesse Collins will serve as co-executive producers of the halftime show. The creative direction of Lamar's performance will be provided by pgLang.
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