A senior Netflix official said the company currently has no plans to offer an ad-enabled streaming option, but declined to rule out the possibility in the future.
While Disney+ has just formalized the arrival of a cheaper subscription with advertisements included later this year, some of its competitors like Netflix are also considering move towards this economic model to bring down the price of subscriptions.
At Morgan Stanley’s technology, media and telecommunications conference, Netflix chief financial officer Spencer Neumann didn’t rule out adding advertising to the platform. He stated that the company would never say “never”although advertising is not part of its plans at the moment.
Netflix could add ads between each episode of your series
Some Wall Street analysts have in the past urged Netflix to develop a less expensive level of service with advertising to increase its revenue. The company’s pace of new subscribers has slowed in recent quarters, and Netflix shares have fallen nearly 43% this year.
For its part, Disney said it sees this new subscription option as a “cornerstone” of its plan to grow the number of subscribers to its streaming services to more than 230 million by 2024. Disney+ currently has around 130 million subscribers worldwide, less than Netflix’s 222 million, although Disney’s service has grown at a faster rate in recent months.
If Netflix were to add advertising to its platform, it would not affect all subscriptions. In effect, only the cheapest Essential package at 8.99 euros per month should be impacted, while those who opted for the Standard and Premium subscriptions could still enjoy the ad-free service. The arrival of advertising could therefore allow Netflix to block the price of its most affordable package, or even make it cheaper. And you, would you be ready to accept some advertisements if this leads to a reduction in the price of the subscription?