AMC Networks has begun to distribute the ad-supported version of its streaming service AMC+. The new tier will be $4.99 a month and will include a “light ad load” of less than five minutes of commercials every hour.

Over the last year, both streaming services and customers have adjusted to rising inflation. A combination of price hikes by streamers and budget-conscious customers has spurred interest in ad-supported video on demand, or AVOD, and free ad-supported streaming TV, or FAST.

According to TiVo’s Video Trends research, time spent watching AVOD and FAST services climbed 6% between 2022 and 2023. Furthermore, the number of ad-supported tiers of subscription video on demand (SVOD) services has grown. Netflix, Peacock, Hulu, Paramount+, and Max all reported an increase in ad-supported subscribers.

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“This ad-supported version of AMC+ gives consumers more flexibility while bringing ads to the only piece of our distribution ecosystem that wasn’t already ad-supported,” said Kim Kelleher, AMC Networks’ chief commercial officer.

The new tier, according to AMC, will feature all of the same episodes and movies as the ad-free version, as well as AMC’s own series and franchises such as The Walking Dead: Daryl Dixon, A Discovery of Witches, and Anne Rice’s Interview with the Vampire.

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Ad-tier subscribers will have full access to Shudder, Sundance Now, IFC Films Unlimited, AMC, BBC America, IFC, and Sundance TV linear networks with the AMC+ bundle.

In order to mitigate losses, AMC announced plans to launch a lower-cost version of its AMC+ subscription in April. Between the end of 2022 and the beginning of 2023, the network lost around 300,000 members, reducing the overall number of subscribers from 11.8 million to 11.5 million.

AMC+’s ad-free version is still available for $8.99 per month or $83.88 per year.

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