Netflix is reportedly considering a new strategy to expand its user base by introducing a free, ad-supported plan in select markets across Asia and Europe.
This new tier would allow users to access Netflix's content without a subscription fee, but with ads, making it an entry-level option below the current ad-supported plan, which is the platform's cheapest option available.
As reported by Bloomberg, Netflix has discussed launching this free plan in regions where free TV networks are already popular. This initiative is aimed at broadening the platform's audience by making its content accessible to more viewers in these markets. The free plan would be a significant shift in Netflix's strategy, targeting markets where affordability is a major concern.
This wouldn't be Netflix's first foray into free streaming. In 2021, the company introduced a free plan for Android users in Kenya, which was discontinued last year. Despite this global strategy, Netflix has no intentions of offering the free tier in the US, where it already provides an ad-supported plan for $6.99 (approximately Rs. 600) per month.
Amy Reinhard, Netflix's President of Advertising, highlighted that the ad-supported plan currently has 40 million active users worldwide, a significant increase from 5 million users last year. Additionally, in countries where it is available, this plan accounts for 40 percent of all new sign-ups.
The rumored free plan could not only attract more viewers but also increase advertising revenue for Netflix. This aligns with the company's plans to develop an in-house advertising technology platform, expected to launch by the end of 2025. This platform is set to provide advertisers with new purchasing options, insights, and ways to measure impact, thus enhancing Netflix's advertising capabilities.