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Netflix is launching a new streaming option with adverts in 12 countries in November, as it looks for new ways to attract viewers and drive growth.
The offering, which is less expensive than its current plans, will be available in some of its biggest markets.
These include 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.
Netflix has been losing customers as competition and cost of living pressures mount.
The company has lost more than 1 million subscribers this year. It is due to provide an update of that figure for investors next week.