Netflix plans to introduce free ad-supported tier in Asia and Europe: Report

Netflix is also developing its own advertising technology platform, scheduled for launch by the end of 2025.

Netflix is preparing to introduce a major adjustment to its subscription model by introducing a free, ad-supported plan in certain Asian and European markets, as mentioned in a Mint report. This move is aimed at widening Netflix's audience by granting access to its vast content library at no cost, aligning with the company's strategy to grow its user base and compete with local free TV services.

According to a Bloomberg report, Netflix's initiative is specifically targeting regions where ad-supported television networks are already widely used. Sources familiar with the matter indicate that this strategy aims to draw in more viewers and strengthen Netflix's competitive standing against regional free TV alternatives.

The introduction of a free plan is expected to boost viewership, thereby driving up ad revenue for Netflix. In addition to this move, Netflix is actively developing its own advertising technology platform, scheduled for launch by the end of 2025. This platform aims to offer advertisers advanced capabilities for ad purchasing, insights gathering, and campaign performance measurement, enhancing their overall advertising experience on the platform.

Netflix has seen a surge in the adoption of its ad-supported tier, with global monthly active users soaring to 40 million, a stark rise from five million a year earlier. Since its November 2022 launch, Netflix's ad-supported plan has gained substantial traction, accounting for 40% of all new sign-ups in eligible countries.

To streamline automated ad buying and enhance user engagement, Netflix plans to collaborate with leading industry players such as Trade Desk, Google Display & Video 360, Magnite, and Microsoft. This strategic initiative aims to offer clients innovative methods for purchasing advertisements efficiently.