Netflix is launching a new streaming option with adverts in November, introducing a less expensive offering as it fights to keep viewers.
The plan 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. Subscribers to the new offering should expect to see an average of four to five minutes of adverts per hour, the company said.
Netflix's move into advertising is a big change for the company, which pioneered the idea of subscription-based streaming. But as more entertainment companies roll out online streaming platforms, it has had a harder time retaining subscribers, especially as households concerned about the rising cost-of-living look for ways to cut back.
Many of Netflix's competitors already combine streaming with adverts or have plans to. Disney, for example, is due to roll out an advert supported service in December in the US. That plan will start at $7.99 a month.
Disney said it had 221.1 million streaming subscribers at the end of the June quarter. Netflix said it had 220.7 million streaming subscribers.