Netflix is already known to be working on launching a new subscription model that will be more affordable but will run advertisements. While we have already reported on some details regarding the sacrifices the new plan makes for the cheaper price tag, a new report has revealed that it will also be missing another crucial feature.

According to a Bloomberg report, the new ad enabled subscription business model on the popular video streaming platform will not allow downloads either. For those unaware, the streaming service typically lets users download shows or movies that they would like to watch later on. However, it appears that the more affordable plan that runs advertisements will not let you download these shows for offline viewing.

The report found that the code in the Netflix iOS application stated that the “Downloads available on all plans except Netflix with advertisements.” As of right now, the exact price tag for this new subscription plan is still unknown, although, it is confirmed to be the new starting plan which falls below the Basic Plan that costs 10 US Dollars. With the ad supported tier, the streaming service will likely perform the same 480p streaming option as the basic plan but will generate additional revenue through the ads.

The company is apparently launching the new ad enabled tier due to a decline in users and its revenue. Netflix claimed that the lose in subscribers for the first time in a decade was reportedly due to a “a huge number of home sharing accounts” as well as upcoming “competition.”

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Last month, Netflix announced that they will soon be imposing extra charges on users who share their passwords with people outside their house. This new feature, along with one other will soon be launched in Chile, Costa Rica, and Peru for a test run.

Now, talking to investors and analysts, the company’s CEO Reed Hastings has stated that the platform would be open to exploring the potential that advertisement-based viewing plans, that would be cheaper for users to subscribe to, in a bid to get the service to reach more users. The statement comes after Netflix recorded a loss in subscriber base for the first time in over a decade.

Hastings told the analysts that the current market has made the company rethink its strategies and how it wants its users to experience the platform. The CEO made it clear that he doesn’t prefer the “complexity of advertisement” over the “simplicity of subscription,” However, he does realize that Netflix already reaches a high number of households within its target audience, and to grow beyond this, the platform needs to make some changes.

The company is betting on the cheaper ad-supported plan to be this change for them, which will drive their users beyond the current ceiling. The plans, however, are not ready yet, and Hastings states that it will take up to two years for them to materialize. It remains to be seen if the users will be interested in watching ads even after paying a subscription fee to the platform. Another thing that remains to be seen is how intrusive the adverts for Netflix will be. Will users experience ad breaks while watching shows or movies, or will Netflix bake them into the UI too? Will there be a skip button after a certain amount of time?

What do you think of this decision? would you be interested in buying a Netflix subscription that costs less but comes with ads? let us know in the comments below.

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