Netflix is making significant changes to its subscription structure. The company has started a process of phasing out the Basic plan without ads for long-time customers, starting from the United States and Canada, with the intention of extending this policy to other key markets. The news comes after what predicted the inclusion of a new one Very affordable Netflix subscription plan.
Netflix, the basic plan without ads will be canceled
This strategic move, previewed to shareholders during the presentation of the previous year's financial statements, reflects a growing trend in the sector: the integration of hybrid business models that combine subscriptions and advertising revenues. Netflix revealed that the ad-supported plan now represents 40% of new registrations in the markets where it is available, a fact that certainly influenced this decision.
The impact of this transition will be particularly evident for users who currently benefit from the €7,99 monthly Basic plan, no longer available for new subscribers in Italy since last October. These customers will be able to keep their current plan until they make changes or cancel their subscription.
For those who wish to keep the cost low, theThe proposed alternative is the Standard plan with advertising. In Italy, this plan, priced at €5,49 per month, offers Full HD viewing on two devices simultaneously, but includes advertising breaks.
This strategy by Netflix can be interpreted as an attempt to balance revenue growth with the need to offer accessible options in an increasingly competitive market. In some ways it recalls the evolution of the business models of traditional television, which has seen the integration of advertising as a source of economic sustenance or as done by Amazon Prime.
User reaction to this transition will be crucial. While some might appreciate the cost reduction by accepting the presence of ads, others may perceive this move as decreasing the value of the service. Netflix's adaptability to these reactions will determine the long-term success of this strategy.
