Netflix, once a pioneer of ad-free viewing that offered a break from traditional TV norms, is now contemplating launching free ad-supported versions of its service in markets like Europe and Asia, Bloomberg reported.
The plans to offer a free ad-supported tier, albeit in select markets, suggests that pivot towards monetizing user data, in other words — making users and not the extensive library of award-winning shows a product, might be well in the pipeline.
This is the best summary I could come up with:
Netflix, once a pioneer of ad-free viewing that offered a break from traditional TV norms, is now contemplating launching free ad-supported versions of its service in markets like Europe and Asia, Bloomberg reported.
Greg Peters, Netflix’s co-CEO, recently told The Verge that they view ad sales as “a new muscle” for the streaming giant to “build” and then apparently flex.
According to a recent Madison and Wall survey, cited by Bloomberg, Netflix currently ranks around ninth or tenth in the online video advertising space, all while lagging far behind not only YouTube, but also Disney and Paramount, and struggling to catch up with Amazon and Roku.
Maxine Gurevich of Horizon Media argued that as long as people find the service valuable and the ads are minimally intrusive — that is, highly relevant and engaging — they should not detract from the overall user experience.
For example, Netflix’s intention to show ads during the NFL’s Christmas games to all subscribers, including those in the ad-free tier, is a tad disconcerting.
Only time will tell what happens with Netflix’s subscription tiers, and whether we’ll see moderately priced ad-supported options alongside premium ad-free versions that will be generally out of reach for regular consumers.
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