Streaming platforms have been diversifying their revenue beyond monthly subscriptions, with advertising gaining ground in recent years. Netflix now admits the possibility of, in the future, offering a fully free plan funded by advertising in certain markets, allowing users to watch some content without paying a monthly fee. The possibility was discussed by Greg Peters, the company's co-CEO, during a results presentation to investors in July, as reported by Forbes.
The possibility is, however, far from being a done deal. One of the risks analyzed by Netflix is that a free service could lead some current subscribers to abandon paid plans. For this reason, any eventual no-monthly-fee option would need to be sufficiently different from existing subscriptions and be available mainly in markets where advertising revenue would compensate for the absence of monthly payments. The company has already offered a more affordable plan with ads since 2022, through a partnership with Microsoft.
The strategy is part of a broader transformation at Netflix, which seeks to increase each user's viewing hours to generate more advertising revenue. The platform has been exploring new video formats, lifestyle-related content, podcasts, and projects using artificial intelligence tools during production. The company has also been expanding distribution partnerships and the presence of live broadcasts, bringing its model closer to characteristics traditionally associated with traditional television.
Disney has also admitted to exploring a free ad-supported product, at a time when major platforms are seeking to simultaneously increase audience and advertising revenue. In Portugal, however, there is no official announcement that any eventual free plan will be made available, with prices remaining between €8.99 and €17.99 per month, depending on the chosen plan.
