With other streaming services finding success with ad-supported plans, there has been speculation that Netflix might consider joining the others in offering a less expensive plan and adding advertising as another revenue stream. During a Morgan Stanley investor conference this week, CFO Spencer Neumann said that’s not part of the plan right now.
“Never say never, but it’s not in our plans right now,” Neumann said when asked about introducing an ad-supported plan. “Other folks are learning from it so it’s hard for us ignore that others are doing it. But for now, it doesn’t make sense for us.”
The “others” that Neumann referred to include Disney+. Last week, Disney confirmed that it will be expanding its subscriptions by introducing an ad-supported tier in addition to its ad-free tier, beginning in the U.S. late this year, with plans to take the ad-supported tier international in 2023. Disney said it expects the ad-supported tier to help the company reach its long-term goal of 230-260 million Disney+ subscribers by 2024.
For now, Netflix is sticking with its ad-free model. “We lean into consumer experience and consumer choice and what’s great for our creators,” Neumann added. The streaming giant has around 222 million global subscribers and announced price hikes for some of its plans in the U.S. and Canada earlier this year.