Netflix would be considering a new totally free payment plan like the one offered by other streaming platforms. streaming in Spain and the rest of the world, for example, Spotify or YouTube. In exchange for viewing your content without having to pay, users would consume ads Just like traditional TV channels.
This was stated by Netflix’s content director, Ted Sarandos, at the last quarterly meeting with investors, as reported The Hollywood Reporter. Sarandos said the company is considering expanding to include a free tier with advertising.
Platforms often use this strategy to attract more consumers, who can delve into the content catalog and later decide to pay a subscription to get rid of advertising. This new option fits with the measures that Netflix is adopting to prevent its users from continuing to share accounts between several people who do not live together.
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It has been available for weeks now. new basic plan with ads that Netflix has launched in Spain for a price of 5.49 euros per month. This cheaper subscription model gives access to almost all the content just like the other paid plans without advertising. This new option also does not include the possibility of downloading the content.
Sarandos points out that Hulu’s success with advertising served as their guide to undertake this new strategy. With Netflix’s 230 million subscribers and global scale (Hulu only operates in the US), the company believes it will be able to outpace Hulu in the ad space. The free option would come later, when the company has dealt this year with these two novelties: the cheap plan with advertising and the fight against shared accounts.
They also haven’t indicated yet how the ads would apply on that possible free plan. In the new cheap payment plan, advertising has been included at the beginning and during playback with four or five minutes of advertising per hour in blocks that will last about 20 seconds.
Continuing with the dynamics adopted by the platform in its new cheap plan, it is to be expected that completely free access, in addition to showing more ads, does not offer the entire catalog. In the 5.49 euro plan, only between 5% and 10% of the total catalog is reproduced depending on the country.
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Actually, the platform streaming He has been considering the possibility of open your services for free. For example, in 2019, it tested in India to offer free episodes to new users to get them hooked on the premiere series and encourage them to subscribe. It has also tried cheaper subscriptions if content was only consumed from the mobile.
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