A Netflix executive caused a stir yesterday when he didn’t completely rule out an ad-supported tier for the streaming giant, but he didn’t exactly rule it out inThat is.
At an investor conference on Tuesday, Netflix CFO Spencer Neumann (as reported by Variety) addressed the issue of other streaming rivals launching ad-supported options, Disney+ being the most recent example. .
Neumann made headlines as he absolutely didn’t reject the idea of an ad-supported tier for Netflix. But when you keep reading his quotes, he doesn’t seem so enthusiastic.
“It’s hard for us to ignore that others are doing it,” Neumann said, “but it doesn’t make sense to us anymore.” Variety notes that Neumann was asked if he’d ever sign up for the next ad-supported Disney+ tier, and his response – “I don’t think I’ll get it”-said.
Disney announced late last week that it would be rolling out an ad-supported Disney+ subscription plan in late 2022. The company said it would wait to detail the cost of the new tier.
The standard, ad-free version of Disney+ costs $8 a month, following a $1-a-month price hike imposed a year ago.
Last summer, HBO Max dropped its own ad-supported tier for $10 per month, which is $5/month more than HBO Max without ads.
Meanwhile, Peacock and Paramount+ each charge $5 per month for their own ad-supported plans (Peacock also has a free tier).
Launching on an ad-supported tier makes a lot of sense for a new streamer who is always trying to grow their subscriber base, and that includes virtually every major streaming player in addition to Netflix, which has 222 million subscribers. subscribers.
Certainly, the growth of Netflix at is slowing down, while upstarts like Disney+ are starting to catch up. But Netflix seems content to grab eyeballs in other ways, like its recent foray into gaming, rather than dipping a toe into ads.
So yes, anything is possible, but it doesn’t look like there will be an ad-supported Netflix plan in the near future.
“It’s not like we have a religion against advertising, to be clear,” Neumann said (again, from Variety’s report). “But that’s not something that’s in our plans right now. We have a great scalable subscription model, and again, never say never, but that’s not in our plan.