A few months ago, Netflix revolutionized its business model by introducing ads on the platform, a significant change for the streaming giant that has also seen competitors, such as Amazon Prime Video, follow suit.
As a result, subscription options have diversified: in addition to the standard and premium versions, a standard option with ads has been added at a lower cost.
Ironically, Netflix may be more cost-effective at driving users toward subscriptions with ads. Instead of maintaining this commercial-free standard.
Although the cost of a subscription with ads is lower than a traditional subscription without commercials, this model guarantees greater income thanks to the revenue generated from selling advertising space.
In this way, broadcasting is increasingly approaching the typical management of traditional TV channels by offering Fewer commercials than TV networks but follows a similar business logic.
Goodbye to the standard Netflix subscription
newly, Netflix has decided to cancel the standard subscription in some countriesforcing users to choose between the ad-supported or premium option. This news was reported by some users on Reddit and concerns markets like the UK and Canada where the change has already been implemented. It remains to be seen whether this new policy will be expanded globally, including Italy.
With the standard subscription removed, Netflix offers its users a choice.: Agree to pay less by watching content with ads or opting for a premium subscription to enjoy content without ad interruptions. The subscription that allowed full viewing without commercials and on two devices at once will no longer be available.
In Canada and Great Britain, users will have to adapt to the new policy.The standard Canadian monthly plan used to cost $9.99, but subscribers will now have to decide whether to upgrade to the $6 ad-supported plan or opt for the $16.49 premium plan. This forced change raises questions about the value placed on user experience versus monetization through ads.
At the moment in Italy there are three options.: The ad-free plan is offered at €5.49 per month, similar to the standard but with mandatory ads; the standard plan starts at €12.99 per month; and finally the premium plan that offers 4K resolution and simultaneous viewing on four devices without ads at a cost of €17.99 per month. It is not certain whether Italians will also have to adapt to the company’s new strategy in the coming months.
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