Netflix with ads launches Nov. 3, will be missing up to 10% of Netflix catalog

The Netflix logo is shown on a screen while a person holds a TV remote.

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Netflix is launching a $6.99-per-month version that includes four or five minutes of ads per hour and video quality that tops out at 720p. The new "Basic with Ads" option, to be available starting November 3, will also have slightly fewer movies and TV shows than the pricier tiers.

"In short, Basic with Ads is everything people love about Netflix, at a lower price, with a few ads in-between," Netflix COO Greg Peters wrote in an announcement today.

Ads will be 15 or 30 seconds in length and will be shown before and during shows and movies, the announcement said. Basic with Ads will have an "average of 4 to 5 minutes of ads per hour," and won't provide the ability to download videos.

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