Netflix is the most popular streaming platform but can be too expensive for many, especially in countries like India. In smaller cities, people often don’t watch Netflix or they download its content illegally, which causes the company to lose money.
According to the latest reports, Netflix is thinking about offering a free version that shows ads in some countries.
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Netflix feels keeping viewers engaged is crucial. Netflix had 270 million subscribers in May 2024 and might use a free version with ads to get more viewers.
Netflix might offer this free version in Europe and Asia (might include India) to attract more people. There are no plans to do this in the US yet, but it could happen in countries with popular free TV channels, like Germany and Japan.
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If Netflix offers a free version with ads, it could reach people who don’t want to pay for a subscription (currently, the cheapest plan with ads costs $6.99 per month in the US).
The free version probably wouldn’t include popular shows like Stranger Things, Wednesday, Squid Game, and Avatar: The Last Airbender because of licensing agreements.
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Netflix has the most subscribers among streaming services in the world, but it makes less money from ads compared to YouTube (nearly $15 billion) and rivals like Disney (about $10 billion) and Paramount (about $8 billion).
Netflix’s ad-supported plan now has 40 million users, with many new signups choosing this cheaper option after the company stopped allowing password sharing.
Other free streaming services like Tubi and PlutoTV are growing. Tubi, for example, became more popular than Disney+ in the US, with 1 million viewers in May. PlutoTV also offers free movies and shows without a subscription and has grown as other services raise their prices.
Netflix’s executives say that engaged viewers who spend time on their OTT platform are more likely to stay and recommend it to friends.
In 2023, Netflix users watched 183 billion hours of content.
