Netflix to launch free ad-supported tier in Asia, Europe: Report

Netflix is set to introduce a free, ad-supported subscription plan in select Asian and European markets, according to a report by Mint. This strategy is designed to expand Netflix's audience by providing access to its extensive content library at no cost, helping the company grow its user base and compete with local free TV services.

Bloomberg reports that Netflix is specifically targeting regions where ad-supported television is already popular. Sources indicate that this move aims to attract more viewers and enhance Netflix's competitive position against regional free TV alternatives.

The free plan is expected to increase viewership, thereby boosting ad revenue for Netflix. Additionally, Netflix is developing its own advertising technology platform, which is expected to launch by the end of 2025. This platform will offer advertisers advanced tools for ad purchasing, insights gathering, and campaign performance measurement, improving their advertising experience on the platform.

Since the introduction of its ad-supported tier in November 2022, Netflix has seen a significant rise in adoption, with global monthly active users increasing from five million to 40 million in just one year. This ad-supported plan now accounts for 40% of all new sign-ups in eligible countries.

To streamline automated ad buying and enhance user engagement, Netflix plans to collaborate with industry leaders such as Trade Desk, Google Display & Video 360, Magnite, and Microsoft. This initiative aims to provide clients with innovative and efficient methods for purchasing advertisements.