Netflix is reportedly considering the launch of a free ad-supported plan in select Asian and European markets.
This move aims to increase its audience by offering content without a subscription fee, albeit with ads.
Details of the Free Ad-Supported Plan
Current Ad-Supported Plan: Currently, Netflix’s most affordable option is an ad-supported plan priced at $6.99 (approximately Rs. 600) per month.
Proposed Free Plan:
Availability: The free plan would be available in select Asian and European markets where free TV networks are common.
Content and Ads: Users would have access to Netflix’s content library but with ads integrated into the viewing experience.
Exclusion of the US: There are no plans to introduce this free tier in the US.
Previous Attempts: Netflix experimented with a similar free plan in Kenya in 2021, but it was discontinued the following year.
Strategic Aims and Market Impact
Increasing Viewership: This move is aimed at expanding Netflix’s user base in markets where the competition from free TV networks is significant.
Advertising Revenue: By introducing a free plan, Netflix could attract more advertisers, boosting its advertising revenue.
User Statistics:
Current Ad-Based Plan Users: The ad-supported plan has grown to 40 million active users globally, a significant increase from 5 million last year.
Sign-Up Contribution: In markets where the ad-supported plan is available, it accounts for 40% of all new sign-ups.
Future Plans: Netflix aims to develop an in-house advertising technology platform by the end of 2025.
This platform will provide advertisers with innovative ways to purchase ad space, gain insights, and measure impact.
