There was a mixed response when Netflix revealed its plan to introduce ads on its platform. Towards the end of 2022, the streaming service launched an ad-supported plan priced at $6.99 per month in select regions as a more affordable choice compared to its ad-free offerings at the time.
Interestingly, at that time, getting an extra user slot for an ad-free Netflix plan was more expensive than subscribing to the ad-supported plan.
Netflix actively promoted the ad-powered plan initially named Basic with ads, which was later changed to Standard with ads to highlight its benefits over the basic plan.
Moreover, Netflix has raised its prices several times since launching the ad-supported plan. It is now looking to phase out the cheapest ad-free plan to incentivize existing basic plan users to upgrade to other plans, making the ad-supported plan more attractive than ever.
Although opting for the Standard with ads plan on Netflix comes with some downsides like ads and a limited selection of shows and movies, it has become popular due to its cost-effectiveness.
Initially, streaming services positioned themselves as ad-free alternatives to cable TV with vast content libraries. However, the landscape shifted with the introduction of ad-supported plans.
Currently, Netflix users can choose between the $6.99 ad-supported Standard with ads plan or pay a minimum of $15.49 for the ad-free standard plan.
In recent months, the number of active users on Netflix’s ad-supported plan surpassed 40 million for the first time. In January alone, this figure was at 23 million.
While this figure does not make up the majority of Netflix’s 270 million subscribers, 40% of new users signing up for the service are opting for the ad-supported plan. With an upcoming price increase anticipated, this percentage is likely to increase further, unless there are additional price hikes for the Standard with ads plan.
Netflix is committed to live programming, with a specific focus on the US market. Viewers can look forward to watching two NFL Christmas Day games and WWE RAW matches starting in 2025.
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