Some analysts are skeptical over whether an ad-supported plan will significantly boost customer growth, or if it will cause ad-free customers to downgrade to less expensive plans. At that time, the cost of an ad-free Disney+ plan will go up to $11 a month.Ĭompany Town Layoffs at Netflix have some staffers questioning company strategy and cultureĪs Netflix grapples with a loss in subscribers, the company’s vaunted “team” culture is coming under strain as some employees worry about their future. Netflix will debut its ad-supported plan before Disney+, which will launch an $8 monthly ad-supported plan on Dec. For example, ad-free HBO Max and Hulu is priced at $14.99 a month. Netflix monthly ad-free plans range from $9.99 to $19.99, two of which are seen as the most expensive compared to any popular U.S. “These audiences have no aversion to watching ads in exchange for free or reduced price content and are prime candidates to turn to Netflix’s new ad-supported tier,” Samba TV Chief Executive and Co-Founder Ashwin Navin told The Times last month. Nine out of 10 adults who don’t have Netflix watch other ad-supported streaming content, according to a recent survey of 2,500 U.S. and Canada and roughly $2.65 billion in 2026 in that region.Īnmuth said in a research note that given Netflix’s muted subscription growth, “advertising is critical to re-accelerating revenue” and driving more profitability.īy offering ads, Netflix may be able to reach people who aren’t subscribers. Morgan, estimates that the new plans could bring Netflix around $600 million in advertising revenue next year in the U.S. The pandemic saw unprecedented sign-ups for streaming, but since then, Netflix has struggled.ĭoug Anmuth, head of U.S. The company - which remains the dominant subscription streaming service with nearly 221 million customers worldwide - is under pressure by investors to continue to grow its business. But as the company faced increasing competition from rivals like HBO Max that offered lower-cost, ad-supported subscriptions to customers, some analysts said it was inevitable that Netflix would do the same. The push into advertising comes years after Netflix resisted putting commercials on its programs. The company said a limited number of shows and movies won’t be available on its Basic with Ads plan because of licensing restrictions, and customers won’t have the ability to download programs. Netflix will still offer ad-free subscriptions, but for people seeking a discount, an average of four to five minutes of ads will be spread out before and during their favorite programs each hour. The Los Gatos streamer on Thursday said it would launch a cheaper, ad-supported plan at $6.99 a month starting on Nov.
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