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Business News/ Technology / News/  Netflix plans to expand reach with free, 'Ad-supported tier in Asia and Europe: Report
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Netflix plans to expand reach with free, 'Ad-supported tier in Asia and Europe: Report

Netflix is reportedly launching a free, ad-supported plan in select Asian and European markets to attract more viewers and compete with local free TV services. The company aims to increase ad revenue and enhance its advertising technology platform by the end of 2025.

A Bloomberg report highlights that Netflix's initiative is targeting regions where free, ad-supported television networks are already prevalent. Premium
A Bloomberg report highlights that Netflix's initiative is targeting regions where free, ad-supported television networks are already prevalent.

Streaming giant Netflix is poised to make a significant change to its subscription model by launching a free, ad-supported plan in select Asian and European markets. This new offering aims to broaden Netflix's audience by providing access to its extensive content library at no cost, aligning with the company's strategy to expand its user base and compete with local free TV services.

A Bloomberg report highlights that Netflix's initiative is targeting regions where free, ad-supported television networks are already prevalent. Insiders suggest this plan is designed to attract more viewers and bolster Netflix's competitive position against regional free TV offerings.

For advertisers, the introduction of a free plan is expected to lead to a substantial increase in viewership and, consequently, higher ad revenue for Netflix. The company is also working on developing its own advertising technology platform, which is slated to launch by the end of 2025. This platform is anticipated to provide advertisers with enhanced tools for purchasing ads, gaining insights, and measuring campaign effectiveness.

Netflix recently reported a remarkable increase in the adoption of its ad-supported tier, with global monthly active users climbing to 40 million, up from just five million a year earlier. This dramatic growth underscores the success of Netflix's strategy to attract new users with a more affordable plan.

The expansion of the ad-supported tier comes amid intense competition in the streaming industry, where companies are increasingly offering bundles to retain subscribers. Since its launch in November 2022, Netflix's ad-supported plan has gained significant traction, with 40 percent of all new sign-ups in eligible countries coming from these plans.

Notably, research by Antenna indicated that during the fourth quarter, ad-supported plans were the primary source of new subscribers for the streaming industry, marking the first time such a trend has been observed.

As part of its ongoing efforts to enhance its advertising capabilities, Netflix has announced plans to launch an internal advertising technology platform by the end of 2025. This strategic initiative aims to provide clients with innovative methods for procuring advertisements and improving user engagement.

To expedite automated ad buying, Netflix will partner with industry leaders such as Trade Desk, Google Display & Video 360, and ad-tech firm Magnite, alongside Microsoft.

Netflix's ad-supported plan, priced at $6.99 per month, offers a competitive alternative to other streaming services. For comparison, Warner Bros. Discovery's streaming service Max offers monthly plans starting at $9.99, while Walt Disney's Disney+ subscription begins at $7.99 per month.

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Published: 25 Jun 2024, 05:06 PM IST
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