Netflix, the world’s leading streaming service, is exploring a new approach to reach more viewers, especially in countries like India where cost can be a barrier. Recognizing that many people in smaller cities resort to illegal downloads due to high subscription fees, Netflix is thinking about offering a free version supported by advertisements.
As of May 2024, Netflix has 270 million subscribers worldwide, and introducing a free ad-supported version could attract even more viewers. This move might start in Europe and Asia, including India, to grow its user base. However, there are no immediate plans for the United States, where the focus remains on the current subscription model.
The proposed free version would likely not include popular shows like Stranger Things, Wednesday, Squid Game, and Avatar: The Last Airbender due to licensing agreements. Instead, it aims to appeal to viewers who prefer not to pay for a subscription, especially since Netflix’s cheapest plan with ads costs $6.99 per month in the US.
Despite Netflix’s dominance in streaming, its ad revenue lags behind competitors like YouTube, Disney, and Paramount. Currently, Netflix has 40 million users on its ad-supported plan, a segment that has grown with stricter rules on password sharing.
Meanwhile, free streaming platforms like Tubi and PlutoTV have gained popularity by offering movies and shows without subscription fees. Tubi, for example, surpassed Disney+ in the US with 1 million viewers in May, showing a shift toward more accessible streaming options.
Netflix executives stress the importance of viewer engagement, noting that users who spend a lot of time on their platform are more likely to stay and recommend it to others. In 2023, Netflix users collectively watched an impressive 183 billion hours of content, highlighting its strong viewer retention strategy.
As Netflix explores new ways to reach a wider audience worldwide, the introduction of a free ad-supported version could signify a significant change in its approach to accessibility and affordability in the competitive streaming industry.