Netflix To Expand Reach By Offering 'Ad-Supported Tier' in Asia and Europe The massive streaming service Netflix is about to provide a free option with ads in a few Asian and European areas, marking a major shift in its subscription business. With this new service, Netflix hopes to reach a wider audience by giving users free access to its vast content collection.
By Kavya Pillai
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The massive streaming service Netflix is about to provide a free option with ads in a few Asian and European areas, marking a major shift in its subscription business. With this new service, Netflix hopes to reach a wider audience by giving users free access to its vast content collection. This is in line with the company's plan to grow its user base and take on regional free TV providers.
According to reports, Netflix's strategy is aimed at areas where free television networks with advertising are already widely available. According to insiders, the goal of this strategy is to increase Netflix's viewership and strengthen its position versus local free TV providers.
The launch of a free plan is anticipated by advertisers to result in a significant boost in viewership and, in turn, increased ad income for Netflix. In addition, the business is creating a platform for advertising technology that it plans to provide by the end of 2025. It is expected that this platform will give advertisers more options for buying advertisements, learning more, and gauging the success of their campaigns.
Netflix recently revealed that the number of people using its ad-supported tier has increased dramatically, from five million to 40 million monthly active users worldwide. This sharp increase highlights how well Netflix's attempt to draw in new customers with a more economical plan worked.
In the midst of fierce competition in the streaming market, where businesses are progressively providing bundles to entice users, the ad-supported tier is expanding. Netflix's ad-supported plan has been very popular since its November 2022 launch; in qualified countries, these plans account for 40% of all new sign-ups.
Other reports revealed that, for the first time ever, the streaming industry's main source of new members during the fourth quarter was ad-supported plans.
At the end of 2025, Netflix intends to introduce an internal advertising technology platform as part of its continuous efforts to improve its advertising capabilities. The objective of this strategic project is to provide clients with inventive approaches to acquire advertisements and enhance user engagement.
Netflix and Microsoft will work together to speed up automated ad buying through partnerships with ad-tech company Magnite, Google Display & Video 360, and Trade Desk.
At USD 6.99 a month, Netflix's ad-supported plan is a competitive option when compared to other streaming services. In contrast, monthly subscriptions to Walt Disney's Disney+ start at USD 7.99, while Warner Bros. Discovery's Max streaming service offers plans starting at USD 9.99.
