Netflix has great original content and a wide selection of movies and TV shows, new and old, for subscribers to choose from. One of the great parts of being a Netflix subscriber is that you don't have to sit through ads when you're binge-watching "Emily In Paris" on a rainy Sunday. Netflix has insisted in the past that they would not introduce an ad-supported model, but they recently opened the door to that possibility.
Just as one of Netflix's competitors (Disney Plus) recently announced an ad-supported subscription option, Netflix's CFO recently indicated that they won't rule out the possibility of that for its platform. This also comes right around the same time that Netflix announced price increases for its subscriptions. The standard plan is seeing a substantial 11% price increase, going up from $13.99 to $15.49 per month. It will be interesting to see how far Netflix can push up prices before they see further growth issues on their platform. 2021 was already the slowest growth year in net subscribers since 2015. Will this most recent price increase deter new customers from joining the platform? Or, worse yet, will existing customers leave and seek alternatives?
Perhaps an ad-based subscription option could help get customers with a lower willingness to pay. It could also be a nice alternative option for those who are turned off by this most recent increase. It will be interesting to see how the subscriber base reacts to the price increase and whether Netflix goes the AVOD route to help its business.
https://variety.com/2022/digital/news/netflix-ad-supported-plan-cfo-1235199510/
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