Netflix Has No Plans Yet for an Ad-Supported Tier

Image: Dima Solomin (Unsplash)

Disney announced earlier this month that it would be introducing an ad-supported subscription offering for its titular streaming service later this year, one that would allow users who aren’t opposed to annoying interruptions to enjoy Marvel movies, Star Wars shows, and other content at a cheaper, yet-to-be-unveiled price. Netflix subscribers who have been wondering whether they might be getting something similar amid rising membership prices should not hold their breath, as Netflix CFO Spencer Neumann clarified during a conference this week that the streamer has no plans to introduce an ad-supported model. While Neumann didn’t completely rule the idea out (“never say never”), the executive suggested that Netflix views advertisements as something detrimental to the streaming experience.

Netflix says an ad-supported tier still isn’t in its plans, despite the Disney+ announcement (TechCrunch)

  • […] Neumann defended the streamer’s current subscription model, saying that Netflix is focused on “optimizing for long-term revenue…and we want to do it in a way that is a great experience for our members.”
  • The underlying thinking here seems to be that introducing ads may indeed help bring the cost of a subscription down, which could in turn attract more subscribers, but it could also mar the end-user experience.
  • […] Netflix just missed Wall Street estimates for subscriber growth in its Q4 2021 earnings. The company had argued at the time the drop was temporary and reflected the later-in-the-quarter launches of some of its more anticipated shows, like the second season of the popular “Bridgerton.” But it also admitted in its shareholder letter that the increased competition from rival streamers “may be affecting our marginal growth.”

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