Netflix
is reportedly discussing the idea of creating free versions of its streaming service in some markets. According to a report by Bloomberg, the US-based streaming giant is planning to offer these free versions in Europe and Asia. With these versions, the company is looking to expand ways to increase its audience, the report revealed citing people familiar with the company’s plans.
These countries may get a free version of Netflix
As per the report, Netflix has already experimented with a free plan in Kenya. However, the company discontinued the free service in the African country last year. The report also mentions that top executives at the company have discussed the need to create a free version of the service in far larger markets, especially those with popular free TV networks where it also sells ads like Germany or Japan.
However, the company has no plans to offer a free service in the US, the report added. The report said that Netflix already reached the majority of its potential customer base in the market. The people familiar with the matter also revealed that the company’s plans are still at a nascent stage. Netflix also hasn’t made any official announcements about the free plans in any market and is merely discussing the same, the report notes.
How these free services can help Netflix
A free service is expected to help the company reach more people who either can’t afford the service or don’t have a good way to pay for it. These free plans would also address one of the biggest present challenges for the company -- creating more advertising inventory.
Apart from
YouTube
, Netflix is the biggest player around when it comes to video streaming., However, when it comes to advertising, it’s still far behind the Google-owned streaming service.
The report also cited Boston Consulting Group’s
Neal Zuckerman
who claims that major clients of subscription-based companies like Netflix and
Spotify
are looking for a new way to generate sales.
Ad-based companies like
, are now selling subscriptions for services like
YouTube Premium
and
YouTube TV
. Meanwhile, companies that are more dependent on subscribers, like Netflix and Spotify are now all-in on ads, the report adds.
