Netflix Is Considering a Free Version

Streaming costs may be on the rise, but at least one streaming platform is eyeing a move that will keep money in consumers’ wallets. After experimenting with different pricing tiers in recent years, and with Chief Content Officer Bela Bajaria declaring that “engagement is the key to success in streaming,” Netflix is reportedly considering launching a completely free, ad-supported Netflix subscription in some markets.

Netflix expanding its reach into the FAST (free ad-supported television) space is still in the internal discussion phase, according to Bloomberg. The outlet reported in a June 23 report that the streamer has “discussed creating free versions of its streaming service” in larger markets, including Europe and Asia, as well as in markets with popular free TV networks where it also sells ads, such as Germany and Japan.

Launching a free version of Netflix would be part of ongoing efforts to further “increase its audience, Bloomberg said, citing “people familiar with its plans.” The streamer currently has a subscriber base of over 270 million users around the world, and launching a free version of the streamer would “help the company reach more people who either can’t afford the service or don’t have a good way to pay for it.” It would also create more advertising inventory.

The move is also reportedly in response to the slow growth of Netflix’s existing ad-based subscription tier. Introduced in November 2022, the tier now has 40 million global subscribers, a number that is just “a fraction of the size” of competitors like Prime Video, Hulu, and Peacock. The streamer also lags behind competitors in terms of video ad sales, paling in comparison to YouTube (nearly $15 billion), Disney (about $10 billion), and Paramount (about $8 billion), according to Bloomberg.

Should Netflix launch a free version, it would not be the first time the streamer has tested the waters of free streaming. Netflix previously tested a free offering in Kenya, which allowed viewers to stream everything from Blood & Water to Army of the Dead, Bridgerton, and more at no cost. Netflix discontinued the offering last year.

The proposed more widely available free tier, which is not imminent, would presumably have some exclusions. Bloomberg reported that the tier would likely not be offered in the U.S., where the streamer has already reached the majority of its potential customer base. The free tier would also likely place some of Netflix’s biggest titles – Stranger Things, Wednesday, Squid Game, andz – behind a paywall due to licensing agreements, similar to how not all content was available to those who subscribed to the ad-supported tier in 2022.

Netflix has not responded to Bloomberg‘s report at this time, and it remains unclear when or if a potential free Netflix subscription tier could launch.