Netflix Plans to Expand Reach with Free, 'Ad-supported tier in Asia and Europe

Netflix is planning to introduce a free, ad-supported subscription plan in certain Asian and European markets to attract a larger audience and compete with local free TV services. The company aims to increase its ad revenue and improve its advertising technology platform by the end of 2025.

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According to a report by Bloomberg, Netflix's goal with this initiative is to target regions where free, ad-supported television networks are already popular. This move is part of Netflix's strategy to expand its user base and challenge local free TV services by offering a wider range of content at zero cost.

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A free plan is expected to boost viewership and raise ad revenue for Netflix. Additionally, the company is working on developing its own advertising technology platform, which is set to be launched by the next year. This platform will provide advertisers with improved tools for purchasing ads, gaining insights, and, measuring campaign effectiveness.

Recent reports show that Netflix has experienced a substantial increase in the adoption of its ad-supported tier, with global monthly active users reaching 40 million, up from just five million a year earlier. This surge in growth underscores the success of Netflix's strategy to attract new users with a more affordable plan.

Research has indicated that ad-supported plans were the primary source of new subscribers for the streaming industry during the fourth quarter, marking the first time such a trend has been observed.

As part of its ongoing efforts to enhance its advertising capabilities, Netflix has announced plans to launch an internal advertising technology platform by the end of 2025. This initiative aims to provide clients with innovative methods for procuring advertisements and improving user engagement.