Netflix says it’s ready to launch a free plan with ads
To ensure a resurgence in popularity, the platform could offer an unbeatable offer.
Are you tired of paying your subscription ever more expensive to see your favorite series being canceled along the way? The Netflix of the future may not cost a penny anymore. When presenting the company’s quarterly results, co-CEO Ted Sarandos was in favor of a free formula for the streaming platform. For the moment, the 6€ plan partly financed by advertisements seems to be having an effect.
The red N finally manages to go up the slippery slope after disappointing results in previous quarters. Over the last recorded period, the group has collected no less than 7.7 million additional subscribers, a victory in short. Nevertheless, more and more free services called FAST for “Ad-supported free TV” (meaning free television supported by advertising) are entering the market. In France, Pluto TV has been offering this kind of program since 2021.
According to Sarandos, this track is being considered at Netflix:
“We are open to all the different models that are available here and there, but we have our work cut out this year, both with paid account sharing, launching ads and continuing to try to promote this kind of content to our subscribers. So we’re keeping an eye on that segment of the market for sure.“
A renewal of the community
Since the arrival of the plan with advertising on the regions concerned (namely the United States, France, the United Kingdom, Germany, Spain, Italy, Australia, Japan, Korea, Brazil, Canada and Mexico), 12% of the service’s total subscribers take advantage of this offer. This launch is a success which above all brings in new subscribers and expands the platform’s community.
According to data from barometer OTT NPA Consultingof the 1.4 million subscribers to this new, more affordable formula, three subscribers out of five are newcomers. Rather than capitalizing on long-standing loyalty, the red N seems to prefer to convince people who have never taken advantage of its services.
The establishment of free access to certain programs in the catalog would therefore be perfectly in line with this new objective: rather than bringing back disconcerted subscribers, it is time to retain others. For now, Netflix can no longer compete with Prime Video which continues to obtain historical partnerships in order to enrich its catalog and establish itself in even more homes.
While waiting for these new developments in the streaming industry, have the “entry-level” advertising-supported packages already succeeded in convincing you? Tell us in the comments.