Netflix To Offer Free, Ad-Supported Tier In Asian And European Markets: Report

Netflix is preparing to introduce a major adjustment to its subscription model by rolling out a free, ad-supported plan in specific Asian and European markets. This initiative seeks to attract a wider audience to Netflix's vast content library without charge, in line with the company's goal to grow its user base and contend with local free TV providers.

According to a Bloomberg report, Netflix is focusing on regions where free, ad-supported television networks are widespread. Insiders indicate that this strategy aims to draw in more viewers and strengthen Netflix's competitive stance against local free TV services.

Advertisers anticipate that the introduction of a free plan will significantly boost viewership and consequently increase ad revenue for Netflix. The company is actively developing its own advertising technology platform, scheduled for launch by the end of 2025. This platform is expected to offer advertisers improved tools for buying ads, gaining insights, and assessing campaign performance.

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Netflix has recently announced a significant rise in the adoption of its ad-supported tier, with global monthly active users reaching 40 million, a stark increase from five million a year ago. This substantial growth highlights Netflix's successful strategy to allure new users with a more cost-effective plan.

Amid fierce competition in the streaming industry, companies are increasingly bundling services to retain subscribers. Netflix's ad-supported tier, launched in November 2022, has gained substantial popularity, accounting for 40 percent of all new sign-ups in eligible countries.

Netflix has announced its intention to roll out an internal advertising technology platform by the end of 2025, as part of its continuous efforts to strengthen its advertising capabilities. This initiative is aimed at offering clients advanced tools to purchase ads and enhance user engagement.

Netflix plans to accelerate automated ad buying by collaborating with industry leaders like Trade Desk, Google Display & Video 360, Magnite, and Microsoft.

Netflix's ad-supported subscription, priced at $6.99 per month, presents a competitive choice compared to other streaming services.

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