Netflix will be launching their new £4.99 subscription with adverts from November 3rd

Netflix has announced that it will be launching a new £4.99 subscription package with adverts.From November 3rd, customers will have the option of paying £4.99 per month to watch Netflix with ads.In an effort to increase its global growth, the basic subscription with adverts will be available in 12 countries.Netflix's cheapest ad-free package is currently £6.99 a month in the UK.The new subscription will have a limited number of films and shows due to licensing restrictions with third parties.

However, according to Netflix's chief operating officer Greg Peters, they are working on resolving the limitations. Customers will also be unable to download TV shows and movies.Netflix's new bargain comes after its market value plummeted by 65% over the last year.The company has also seentwo consecutive quarters of subscriber decline.Netflix's chief operating officer, said in a statement: "In short, Basic with Adverts is everything people love about Netflix, at a lower price, with a few adverts in between. We now have a price plan for every fan. While it is still early days, we're pleased with the interest from both consumers and the advertising community."Microsoft is reportedly handling Netflix's advertising content. It's been said that they are offering UK media agencies a premium price of £50 for for 1,000 viewers.A senior executive at one UK media agency, told the Guardian: "We have been advising clients to go slow on it and see how the numbers pan out before committing. We can't make quarterly commitments at this stage."