With the launch last year of Netflix’s ad-supported plan, a plan that has more than 40 million subscribers around the world, the streaming giant dipped its head into the lucrative world of advertising, a market that generates thousands every year. of millions of revenues that has allowed the company to reach a greater number of homes. However, it seems that it is not enough.
Being a newcomer to the advertising market, it is not surprising that it is in tenth position in terms of revenue generated by advertising. According to Bloomberg, Netflix wants to improve its position in this ranking through a completely free plan, where the user will not have to pay at all to access its catalog.
Netflix completely free with ads
This new plan will not be available worldwide. Netflix’s idea is to launch this new plan in countries where the number of users is smaller, countries where even the plan with advertising is not affordable for many.
The company has been mulling over this issue, even before launching the current ad plan. Between 2021 and 2023, the company launched a free plan with ads in Kenya, a plan that only allowed access to the platform from mobile devices. We do not know why the program ended (probably due to lack of advertisers), but it is unlikely that it was due to lack of success.
Netflix is, after YouTube, the second platform with the most minutes of video streaming in the world, however, as we mentioned above, it is still a long way from obtaining the same income as the YouTube video platform.
Unless Netflix chooses to eliminate all pricing plans and establish a single ad-free rate, it is highly unlikely that it will be able to come close to YouTube’s revenue, however, it wants to do everything it can to climb the rankings, which will allow us to attract a greater number of advertisers.
As we have mentioned, this information is based on information published in Bloomberg based on rumors from sources related to the project. What is clear is that users of this free plan will not have access to the same type of content that users currently have to pay for an ad-free rate.
Model to follow for the rest of the platforms
Netflix has become the path to be followed by the rest of the platforms. What Netflix does will soon be reflected in the rest, so we cannot rule out that the future of these platforms will be directed towards increasing advertising revenue as an additional source of income.
At the moment, Apple TV+ is the only platform that still does not offer a free plan with ads and knowing Apple, it is very unlikely that it will give in, even though its content is still very limited and the number of users The amount they pay every month is very small compared to any other platform.
