Aditya N
Aditya N
Netflix is the leading streaming platform and is widely acclaimed. However, its cost can be prohibitive for numerous individuals, particularly in nations like India. In less populated areas, individuals frequently abstain from subscribing to Netflix or resort to illicitly downloading its content, resulting in financial losses for the company. Recent reports indicate that Netflix is contemplating introducing a complimentary version incorporating advertisements in select countries.
Netflix considers viewer engagement to be of utmost importance. As of May 2024, Netflix boasted an impressive subscriber base of 270 million. To further expand its viewership, Netflix is contemplating introducing a free version supported by advertisements. This complimentary version may initially be made available in Europe and Asia, with a potential inclusion of India, in order to entice a larger audience. While there are no concrete plans to implement this strategy in the United States, it remains possible in countries where free TV channels, such as Germany and Japan, enjoy significant popularity. Suppose Netflix introduces a complimentary edition accompanied by advertisements. In that case, it can potentially attract individuals unwilling to invest in a subscription (presently, the most affordable plan with ads is priced at $6.99 per month in the US). However, due to licensing agreements, the free version likely would not encompass highly sought-after series such as Stranger Things, Wednesday, Squid Game, and Avatar: The Last Airbender.
Suppose Netflix introduces a complimentary edition accompanied by advertisements. In that case, it could attract individuals unwilling to invest in a subscription (presently, the most affordable plan with ads is priced at $6.99 per month in the US). However, the free version likely would not encompass highly sought-after series such as Stranger Things, Wednesday, Squid Game, and Avatar: The Last Airbender due to licensing agreements.
Netflix, the leading streaming service worldwide, boasts the highest number of subscribers. However, when it comes to advertising revenue, it falls behind YouTube, which earns nearly $15 billion, and competitors like Disney and Paramount, which generate approximately $10 billion and $8 billion respectively. Despite this, Netflix’s ad-supported plan has attracted 40 million users, with many new signups opting for this more affordable option after implementing password-sharing restrictions. Meanwhile, other free streaming services like Tubi and PlutoTV are experiencing significant growth. Tubi, for instance, surpassed the popularity of Disney+ in the US, garnering 1 million viewers in May alone. PlutoTV, which also offers free movies and shows without requiring a subscription, has capitalized on the rising prices of other services and expanded its user base. Netflix’s executives emphasize that engaged viewers who spend ample time on their OTT platform are more inclined to remain loyal and recommend it to their friends. In 2023, Netflix users consumed a staggering 183 billion hours of content.
