Netflix has introduced more affordable ad-supported plans to attract additional subscribers and counter the increasing cost of content. They now have two ad-supported options available:
- The Basic plan costs $6.99 per month and offers one stream, SD quality, and limited mobile downloads.
- The Standard plan costs $7.99 per month and provides two streams, HD quality, and unlimited mobile downloads.
Both these plans are priced $3 and $2 lower, respectively, compared to Netflix’s cheapest ad-free plan, which is priced at $9.99 per month and offers one stream, SD quality, and limited mobile downloads.
Netflix is also planning to launch a premium ad-supported plan in the future, priced at $10.99 per month. This premium plan will include four streams, 4K Ultra HD quality, and unlimited mobile downloads.
The company acknowledges that it faces stiff competition from other streaming services like Disney+, HBO Max, and Apple TV+. These rivals have been heavily investing in original content, pressuring Netflix to consider price adjustments.
By introducing ad-supported plans, Netflix aims to attract budget-conscious viewers and generate additional revenue. They plan to use the ad revenue to expand their content library and introduce new features.
While the success of these ad-supported plans remains uncertain, Netflix is optimistic that it will help boost their subscriber base and sustain their business growth.
