Netflix stirred a range of reactions by announcing its decision to incorporate advertisements on its platform. Towards the conclusion of 2022, the streaming giant rolled out a budget-friendly ad-supported plan priced at $6.99 per month in specific regions, offering a more economical option compared to its ad-free plans at the time.
Interestingly, during that period, acquiring an additional user slot for a Netflix ad-free plan proved to be pricier than opting for the ad-supported plan.
Netflix actively promoted the ad-infused plan initially referred to as Basic with ads, which was later rebranded to Standard with ads to emphasize its advantages over the basic plan.
Furthermore, Netflix has iteratively raised its subscription fees post the introduction of the ad-supported plan. The platform is now contemplating phasing out its most affordable ad-free plan to encourage existing basic plan subscribers to shift to other plans, rendering the ad-supported option more enticing than ever.
Although selecting the Standard with ads package on Netflix entails certain drawbacks like advertisements and a restricted array of shows and movies, it has gained traction due to its cost-effectiveness.
Initially, streaming platforms positioned themselves as ad-free substitutes to cable television with extensive content repositories. However, this narrative evolved with the introduction of ad-supported subscriptions.
Presently, Netflix users have the choice between the $6.99 ad-supported Standard with ads plan or a starting price of $15.49 for the ad-free standard plan.
In recent periods, the count of active subscribers on Netflix’s ad-supported plan surpassed 40 million for the first time. In January alone, this number stood at 23 million.
While this quota does not constitute the majority of Netflix’s 270 million subscribers, 40% of new sign-ups are opting for the ad-supported plan. With an impending price surge on the horizon, this percentage is anticipated to climb further, unless there are additional cost hikes for the Standard with ads arrangement.
Netflix is dedicated to live broadcasting, with a prominent focus on the US market. Enthusiasts can anticipate viewing two NFL Christmas Day games and WWE RAW matches commencing in 2025.
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