Netflix has always denied plans to create an ad-supported package that would allow subscribers to pay less, or nothing in order to enjoy Netflix exclusive and other media content on the streaming platform. Disney has recently announced that it will expand its offerings with an ad-supported subscription package in the US, starting in late 2022, and it raised the question of whether Netflix would follow suit. The Netflix CFO shared that the company doesn’t rule out an ad-supported plan in the future, but it’s not currently planned.
Spencer Neumann, CFO of Netflix, recently spoke at a Telecom Conference where he shared that “It’s not like we have religion against advertising, to be clear.” Additionally, he also said that it’s “not something that’s in our plans right now… We have a really nice scalable subscription model, and again, never say never, but it’s not in our plan.” via Variety.
During the conference, Neumann was asked whether Netflix would consider implementing an ad-supported tier, based on the fact that Disney just announced its plan to release it in late 2022 in the US, and in 2023 internationally. Neumann replied that “It’s hard for us to kind of ignore that others are doing it, but it now doesn’t make sense for us,” the CFO said. About Disney Plus with ads, he added with a chuckle, “I don’t think I’ll get it.”
A lot of other streaming platforms introduced cheaper ad-supported tiers in the past few years, including HBO Max, Paramount Plus, and Hulu. Neumann said that he thinks these services “are going low-price, but I think they’re also losing a lot of money.” Netflix increased its prices in recent years, and is strongly focused on a positive cash flow to break even after investing huge amounts into Netflix special series and movies.