After having a less expensive version containing advertising, Netflix could switch to a 100% free model financed by advertisers.
2024 is a year full of announcements for Netflix. Rising prices, removing its standard offer and establishing a formula with advertising are all experiments for the streaming giant. Bloomberg through its newsletter we learn that a completely free version could see the light of day while being 100% financed by advertising.
Money, money, money
Netflix’s growth has been accompanied by many changes within the company. Previously operating through a subscription system, the giant is now opening up to a model that further incorporates advertisers. A choice which allows the platform to increase its number of subscribers, but which could also prove to be more profitable than its system without advertising.
The company is reportedly discussing internally the possibility of launching an offer entirely financed by advertising and 100% free for users, according to Bloomberg. A version which would have been tested in Kenya before being withdrawn. Sources close to the matter announce that the company would also like to implement this offer in Europe and Asia. For the moment no action plan has been decided, Bloomberg points out that these are just discussions. We will have to wait for official communication to find out more.
A commercial success
What we can already say is that this new offer is finding its audience. In its press release, Netflix tells us that its offer with advertisements exceeded 40 million subscribers worldwide in May 2024. Where it only had five million at the time of its launch a year earlier. A commercial success supported by the company’s desire to create engagement for the platform.
“Our audience is very engaged – and by engaged, I mean they choose to spend time watching Netflix. This is important because engagement is the key to success in streaming,” underlines Bela Bajaria, head of content at Netflix. She continues: “When people watch our shows and movies, they get more value from Netflix, stay longer, and are more likely to recommend us to their friends. And that matters to all of you because you also want to be where the audience is. »
Today, 40% of new global subscriptions come from the formula with advertising, if it is available in the country concerned.
