Struggling to compete in the crowded digital streaming industry, Netflix will offer a new ad-supported subscription option for $6.99 a month.

The Basic with Ads option mimics the model of other streaming services such as Hulu. The new subscription option will release on Nov. 3 with the following pricing model:

Basic with Ads: $6.99/month

Basic: $9.99/month

Standard: $15.49/month

Premium: $19.99/month

In a presentation to journalists, Greg Peters, Netflix's Chief Operating Officer, said the company previously avoided a tiered advertising model but is continuing to prioritize consumer choice.

"We want to take a pro-consumer approach and let them land on the right plan for them. We think that the revenue model will be fine as a result."

Advertisements will be 15-to-30 seconds long, accumulating to about four-to-five minutes of ads per hour of content. The streaming platform will collect gender and birth date information from people opting for the cheaper option for ad targeting purposes. Netflix has consulted Microsoft and Nielson to assist in instituting the new advertising option.

The company's subscription prices have been increasing steadily since 2014 and many customers have voiced concern over the increased prices as well as the crackdown on password sharing. Other complaints come from the company's removal of popular series as other streaming services claim the rights to popular films and television series.

Although Netflix airs popular shows such as Stranger Things and Squid Game, other streaming services are also offering popular and critically acclaimed shows. Apple TV showcases Severance and Ted Lasso. HBO Max recently launched a Game of Thrones prequel, House of the Dragon, and Amazon launched a Lord of the Rings prequel, Rings of Power. Disney+ is launching an advertising-supported subscription on Dec. 8, for $7.99 a month.

"We are building momentum, we are pleased with our progress, but we know we still have a lot more work to do." Netflix's chief financial officer Spencer Neumann said during the company's earnings call.