Netflix is to launch a new cheaper package that will have adverts from next month.

Viewers will pay £4.99 a month to access Netflix content and will have to sit through adverts to fund the difference.

Netflix Basic with Adverts will be available in the UK from 4pm on November 3.

Each advert that appears in the discounted plan will be 15 or 30 seconds in length and will play before and during TV series and films.

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Netflix says there will be an average of four to five minutes of adverts per hour.

But while the new package might be cheaper, a limited number of films and TV series won't be available due to licensing restrictions.

Netflix said the number of programmes that might be unavailable will vary between countries. You also won’t be able to download content. Like its Basic plan, you'll only be able to watch Netflix on one device.

The streaming giant’s chief operating officer, Greg Peters, announced on Thursday that the new basic tier with adverts will launch in the UK on November 3 and cost £4.99 a month.

Mr Peters said at the press launch for the new tier: “The timing is great because we really are at this pivotal moment in the entertainment industry and evolution of that industry.

“We’ve seen this gradual switch from linear to on-demand internet-based entertainment, but now that switch is happening at ever-increasing speed, to the point where now streaming has surpassed both broadcast and cable for total TV time in the United States.”

He explained that a similar transition is happening across the world, including the UK, adding: “We at Netflix have a huge opportunity ahead to grow our viewing and to attract more subscribers and part of that is having a wide range of price and plan options for different viewer needs.”

Earlier this year, the streamer increased the price of its basic and standard plan by £1 a month to £6.99 and £10.99 respectively, while the premium tier will go up by £2 to £15.99.

The company has also started to clamp down on customers sharing their accounts with other households.

Netflix started a crackdown in Chile, Costa Rica and Peru on people sharing passwords and is considering expanding the scheme.

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