Streaming content has possibly become the primary form of entertainment, and Netflix continues to evaluate new ways to attract a broader audience for its content. We are now talking about a plan that is completely free, supported by advertising.
Netflix plans offering a free plan with ads
Netflix, the streaming giant (which, by the way, will stop working on many TVs this July), is considering a strategic move to further expand in the global entertainment market. According to Bloomberg reports, the company is exploring the viability of a free subscription plan supported by ads.
This service, with no initial cost for new users, would only be launched in certain countries, especially those where free TV channels already dominate the media landscape, such as Germany and Japan.
In fact, the idea is not new within the company. Netflix previously experimented with a similar plan in Kenya in 2021. During this two-year pilot test, users in the country had access to a cost-free version of the platform's content through Android devices, even with features like free content downloads.
Moreover, this proposal is likely bolstered by the success that Netflix has had with its low-cost ad-supported plan, which has been implemented for some time now and has resulted in significant growth in its subscriber base: it already has 40 million enrollments in its cheap plan. This has been particularly well-received in countries like Spain, where, according to analysis, four out of ten new subscribers opt for more economical versions.
All this has helped Netflix build a robust advertising business line, and has paved the way for exploring more daring and accessible options like the one now being considered. However, there are notable challenges in implementing a free service. The company would need to ensure an attractive content catalog that includes special events, such as sports and concerts, to successfully attract both users and advertisers.
Although the free subscription with ads is still in the planning phase and, therefore, subject to changes, Netflix shows a clear intention to expand its global reach. In time, likely sooner rather than later, we will see if this proposal becomes a reality and which countries will offer this option.
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