Netflix to get even closer to TV with its new subscription 📺

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Netflix, the streaming giant, is exploring the possibility of launching an entirely free subscription in certain regions. This new ad-supported offering could revolutionize the platform’s business model.

A strategic shift for Netflix 🤔

After the success of its ad-supported low-cost subscription, Netflix seems ready to go one step further. According to Bloomberg, the company is considering introducing a free version of its service in certain regions, notably Asia and Europe. This strategy would particularly target countries with « popular free TV networks », such as Germany, Japan, and potentially France.

This move is in line with Netflix’s ongoing efforts to diversify its revenue sources and expand its audience. The ad-supported offer, introduced at €5.99 per month, has already attracted 40 million subscribers worldwide as of May 2024. When it was launched a year earlier, « only » 5 million users had been won over. Today, 40% of new subscriptions come from this formula in the countries where it is available.

A new user experience 🤩

The idea of a free subscription financed by advertising is not entirely new to Netflix. A similar version was tested in Kenya between 2021 and 2023. Although this offer was discontinued, it had enabled users to discover a wide selection of popular series and films at no cost. At the time, Netflix described the initiative as an excellent way for new users to experience its service.

This new free formula could thus be a lever for increasing user engagement. Bela Bajaria, Head of Content at Netflix, stresses the importance of user engagement.

« Our audience is very engaged – and by engaged, I mean they choose to spend time watching Netflix. That’s important, because engagement is the key to success in streaming. »

Competing with traditional television📺

A free version would enable Netflix to compete directly with traditional television. It would also enable it to gain a firmer foothold in the advertising market. Indeed, the company currently occupies tenth place, far behind players such as YouTube, Amazon and Roku.

However, the project for a totally free offer is still in its early stages, and could yet be modified or abandoned. Netflix will have to carefully assess the impact of such an offer on its paid subscriptions and on the quality of the user experience.

If this model becomes a reality, it could redefine the landscape of streaming and television. Consumers would have a new alternative for accessing premium content at no direct cost.

Even if this change goes against Netflix’s initial proposal, it would seem to be increasingly popular with users. It has to be said that, with streaming platforms multiplying, users are keen to save money on their subscriptions.

Do you use Netflix or another streaming platform? If so, do you have an ad-supported or ad-free subscription? What do you think about the change in strategy? Tell us in comments.