Netflix to Launch Free Ad-Supported Plan in Japan and Germany, Fueled by 40 Million MAU Success

June 25, 2024 – According to a report from Bloomberg, streaming giant Netflix is considering the launch of a fully ad-supported plan, allowing users to watch the platform’s video resources free of charge. However, this plan is not expected to be extended to the U.S. market.

Netflix previously experimented with an ad-based free service for mobile devices in Kenya in 2021, although this venture concluded in 2023. Citing Bloomberg, it is speculated that Netflix might introduce the free, ad-supported plan in Germany and Japan. This move aims to attract users who are hesitant to pay for subscriptions while still providing access to Netflix’s growing library of original series and movies.

Despite Netflix ranking second globally in video streaming minutes, just behind Google’s YouTube, it only places tenth in terms of streaming income generated through advertising, as reported by Bloomberg.

As of May this year, Netflix’s ad-supported subscription tier had amassed over 40 million monthly active users worldwide. Notably, in markets where this tier is available, 40% of sign-ups are motivated by the more affordable plan.

Furthermore, the company intends to launch its proprietary advertising platform, severing its previous technology partnership with Microsoft. Although Microsoft will remain a programmatic advertising partner, Netflix is also engaging other advertising technology firms such as The Trade Desk, Google Display & Video 360, and Magnite.

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