Information about abandoning the cheapest package in favor of ad-supported options appeared at the beginning of the year. The removal of ad-free options initially took place in the United States, but now also applies to Canada and the United Kingdom. The launch of the ad-supported subscription took place in the fall of 2022 and covered markets on five continents. Over the last two quarters, the number of subscribers to this type of packages has increased by 70%, which now accounts for 40% of all new registrations in countries where this option is available. At the beginning of this year, the number of users using this model reached 23 million.
Strategic reorganization of the Netflix offer
In the United States, where it is extremely competitive, more than 20 million subscribers have chosen to upgrade to an ad-supported plan. Even though this plan limits access to 5-10% due to licensing restrictions, rapid growth in the number of users and advertising revenues prompted Netflix to consider similar changes in other markets.
In response to the needs of savers, designed the “Basic with Ads” package, which, despite its lower price – reduced to £4.99 from £7.99 in the UK – offers Full HD content and allows you to download content for offline viewing. The package also allows you to use the website on two devices at the same time, which makes it an attractive choice for couples or small families. This package is currently the cheapest solution offered by the platform, although with ads broadcast before and after each episode of the series or movie.
The future of the “Basic with Ads” package in Poland
Although the “Basic with Ads” package is not yet available in Poland, there is a high probability that similar changes will be introduced in the near future. It is not yet clear whether Netflix will decide to immediately withdraw the cheapest package when the new offer is introduced, or will wait for the reactions of Polish consumers. The final decision will depend on market analysis and the adoption of the new model by other countries.
Source: Gazeta
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