Is Netflix reviewing part of its economic model? If nothing has been done yet, it seems that the streaming giant is considering soon offering free subscriptions to its European users. On November 3, 2022, the platform put its “Essential” formula into service. For only 5.99 euros per month – the cheapest offer available – it is now possible to watch your favorite programs… with advertising. Although this announcement was not initially popular, the arrival of advertising on the platform, and especially that of a much less expensive subscription, nevertheless brought in many new subscribers. In total, Netflix announced that it had gained nearly 270 million new users. An exceptional success which then pushed its leaders to think about a 100% free formula.
Today, the advertising-supported subscription system undeniably works. But Netflix still remains too weak compared to its competitors. According to the media Bloomberg, the platform only ranks tenth in the advertising market. It is for this reason that offering a free version, but financed by advertising, could be a good bet for the streaming giant. To begin with, Netflix could offer this new option in European territories, and in particular Germany, which are more often used to consuming programs for free. Thus, the “red N” could gradually get closer to the competition. (…)
(…) Click here to see more
