While Netflix has always had advertisements, the company’s recent earnings report revealed that the number of subscribers using its ad-supported service has grown from 8 million to 20 million in just three years. As a result, the streaming giant may be seriously considering charging $7 to $9 per month for its ad-supported subscription, roughly half the cost of its most popular standard plan. The success of Hulu and YouTube has shown that consumers are willing to pay less than the cost of cable to stream commercials. Could Netflix follow their lead?
Several Pricing Scenarios
If you want to get rid of ads without losing any video quality, the average fee would be $9. If you are willing to put up with lower video quality and some slight buffering, the average fee is $6. For the cheapest possible plan, $7 will get you an ad-supported version of Netflix that’s free from all advertisements but only includes a limited number of viewing hours. This fee is the lowest because it does not offer HD-quality videos like other subscription plans.
Assuming that $9 is your maximum price point, you should know that your monthly bill will still fluctuate depending on how much you use your subscription. The average user spends about 2 hours a day watching videos and costs about $3.50 per month without ads. Those who spend 4 hours a day watching videos cost about $10.75 per month without ads, but if they want to get rid of all ads, they’ll need to pay around $9 instead. If you’re interested in learning more about how much advertising impacts your Netflix service fee, try using an ad blocker or a VPN that prevents advertising from loading when you use the service. As soon as there are no advertisements loaded into videos, it’s like having an ad-free version for free!
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Is This a Good Deal?
Netflix has been a popular subscription service for almost 20 years. It is the most used online streaming service in the United States and has brought joy to binge-watchers everywhere. But there is one thing that many people hate about it: ads! The company announced in February that they are weighing plans to charge $7-$9 per month for its ad-supported plan, roughly half the cost of its most popular standard plan. This could be great news for many users but, at the same time, many people who don’t want ads will have no choice but to pay more just so they can get rid of those pesky TV commercials. There are mixed feelings among users as to whether this is a good deal or not.
What would you pay to watch without ads on Netflix?
Netflix’s ad-supported plan would offer a stripped-down version for those who prefer to spend a smaller amount on their monthly streaming bills. With an ad-supported plan, users would not be able to watch anything in HD and they could only stream the service in standard definition. For people who are already paying $11 per month or less for Hulu or Amazon Prime, which both offer commercial-free options, it doesn’t seem worth the trade-off if they want a large variety of content with high-quality video. It’s possible that there is enough value offered in Netflix’s ad-supported plan to make some people consider switching over, but currently, I would say it’s unlikely given the tradeoffs you have to make.
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What do you think about this potential new model from Netflix?
I’m not sure what I would think about this change, but it could make sense because they still have ads when you’re browsing shows and only charge the occasional $2.99 monthly fee. Charging a little more for an ad-free service may be worth it, especially if there are no commercials interrupting the show you’re watching. Plus, advertising space is lucrative. I can’t imagine that’s a revenue stream they don’t want to get in on even if it means losing some subscribers.
It’s a good model for them, but I think it’ll be harder for customers. For example, I know that ads sometimes cause me to take my eyes off the screen and interrupt my viewing pleasure so much that I never finish what I start. But at least there’s no wait when you’re ready to see a new show and all you have to do is push play. That may be worth an extra $5 or $6 per month if you really use Netflix every day! But if they started charging more than that, especially with ads in between every episode of your favorite show, then they may lose more subscribers than they gain. They’d definitely lose me!
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