The Case for Netflix to Add an Ad-Based Tier

With prices like $5 / month or $8 / month for a commodity mobile platform, the concern is that pricing will soon shift to a “first year free” model or be entirely free, shifting the economic model to one that emphasizes broadcast advertising sales patterns. While this could bolster early acquisition, it degrades Hollywood’s trust in the platform. W... See more

Netflix makes money by selling subscriptions to its bundle. Of course the execution of this strategy is considerably more complex. For example, Netflix focuses on evergreen content because that means that ever more content increases the attractiveness of Netflix to new subscribers, reducing customer acquisition costs. Netflix is also focused on qua... See more

Netflix, which is now spending $17 billion a year on programming, has added another 100 million customers since then, thanks to successes such as Bridgerton and Squid Game , as well as a crackdown on password sharing and the introduction of a cheaper, ad-supported plan. Netflix increased its profit through the first half of 2024 by 60% from a year ... See more