The introduction of ads on the streaming service will be the first since it launched.
This comes as Netflix reported a loss of 200,000 subscribers in the first quarter of this year.
The new ad-supported plan, priced at $6,99 will launch on 1 November in Canada and Mexico and on 3 November in Australia, Brazil, France, Germany, Italy, Japan, South Korea, Spain, the UK and the US. Unfortunately, South Africa is not on the list yet.
Those who subscribe to this plan will be served with 4-5 minutes of ads every hour and will only be limited to 720p streaming quality.
The plan will not include the full Netflix content catalog due to licensing restrictions.
At launch, ads will be 15 or 30 seconds in length, and will play before and during shows and movies.