Netflix is considering making a radical change to increase the number of subscribers. According to news today, the company is considering offering a completely free subscription option supported by ads.
Could Netflix be free?
Netflix previously tried a free plan in Kenya but discontinued it last year. Now it plans to offer a free plan in larger markets such as Europe and Asia. It is especially targeted in countries such as Germany and Japan, where free-to-air television channels are popular and advertising revenues are high.
However, the free Netflix subscription does not seem to be implemented anytime soon. Because the sources that revealed the news state that this plan is currently being discussed only within the company. The free plan option could help Netflix continue its growth, especially in countries where low-income consumers can’t subscribe to the platform at current prices. It can also help the company increase its advertising revenues.
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On the other hand, Netflix’s ad-supported subscription option is not currently available in the US, and the company has no plans to bring this plan to the US. Because Netflix has already reached the majority of its potential customer base in the US market.
Additionally, it has not yet achieved the success it wanted with its ad-supported subscription option. The company’s advertising revenues lag behind rivals such as Prime Video, Hulu and Peacock. Therefore, Netflix aims to reach more users and increase advertising revenues with its free subscription option.
However, it should be reminded that Netflix has been positioned as an ad-free platform for many years. Therefore, it remains unclear how a free and ad-supported subscription option will affect Netflix’s brand image.