comscore Netflix may get an ad-supported free tier to compete with YouTube globally: Report

Netflix may get an ad-supported free tier to compete with YouTube globally: Report

The service's subscription plans, despite being fairly affordable, are still high compared to YouTube, which is 100-percent free.

  • Updated: November 16, 2018 3:36 PM IST

Image credit: Netflix

Unquestionably the most-popular digital content streaming service out there, Netflix has transformed the way people watch movies and TV shows. Now available in 190 countries around the world, Netflix s vast library includes thousands of movies and TV shows in multiple languages, including many regional Netflix Originals . All this content can be accessed by opting for one of the four subscription plans that the service offers, and range from $8 to $14 per month. Also Read - Disney+ Hotstar finally adds 4K streaming for supported TVs

Also Read - How to watch Netflix movies with friends online

Now, considering the sheer range of content that Netflix offers, these prices don t seem too much. However, if we talk about countries like India, where a monthly Netflix subscription costs between Rs 500 and Rs 950 a month, they are not exactly affordable. Then there s the fact that having a (considerably) fast network connection is a basic requirement to enjoy Netflix s streaming content. Also Read - Netflix Hindi interface is now available for Mobiles, Computers and TVs

That said, now consider YouTube. It s true that the service is mostly about short videos and doesn t offer long-form paid content like TV shows and movies (as in the case of Netflix), YouTube is still free, 100-percent. This is the primary reason why YouTube continues to be ahead of Netflix globally, at least as far as video streaming is concerned.

So, what s the solution? Well, if Jeff Green, the CEO of California-based digital advertising agency The Trade Desk is to be believed, Netflix will eventually go YouTube s way and introduce a free tier, supported by advertising.

They ve envied YouTube s international reach for a very long time, where even less than two years ago, 80 percent of subscribers for Netflix were in the US, Green was quoted as saying by a Recode report.

He further added, Our median household income s at $50,000-ish, roughly, a year … compare that to all the places where there s growth in the world, which is also where advertisers are willing to pay ahead. I don t think there s any chance that they can catch up to YouTube, whose geographical distribution is exactly inverted, which is 80 percent comes from outside the U.S., unless they go ad-funded in the same way that YouTube is.

Watch: How to download Netflix shows

It’ll be interesting to see if Netflix eventually goes for an ad-supported free tier. A recent report said that the service seems to be testing a mobile-only subscription with cheaper plans for some markets. Interestingly though, Netflix s CEO Reed Hastings recently confirmed that the streaming platform has no plans to introduce cheaper subscriptions in India.

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  • Published Date: November 16, 2018 3:07 PM IST
  • Updated Date: November 16, 2018 3:36 PM IST

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