{"id":161172,"date":"2025-08-07T10:30:42","date_gmt":"2025-08-07T10:30:42","guid":{"rendered":"https:\/\/teknomers.com\/en\/affordable-with-ads-is-more-profitable-than-pricey-without-ads\/"},"modified":"2025-08-07T10:30:43","modified_gmt":"2025-08-07T10:30:43","slug":"affordable-with-ads-is-more-profitable-than-pricey-without-ads","status":"publish","type":"post","link":"https:\/\/teknomers.com\/en\/affordable-with-ads-is-more-profitable-than-pricey-without-ads\/","title":{"rendered":"Affordable with ads is more profitable than pricey without ads."},"content":{"rendered":"\n<h2>Netflix&#8217;s Bold Move: Eliminating the Cheapest Ad-Free Plan<\/h2>\n<p>Just a few days ago, Netflix announced that it completely eliminated the \u00a0cheapest plan\u00a0 with \u00a0ads\u00a0, revealing a startling but lucrative truth: it compensates to lose the lowest tier, which did not feature any advertisements. This strategic shift is a pivotal change in the landscape of streaming services, as it witnesses the surprising return of a model many believed was long outdated: opting to pay to see ads.<\/p>\n<p><!-- BREAK 1 -->  <\/p>\n<h2>The Removal of the Basic Plan<\/h2>\n<p>Without any official media announcement, on July 30, the platform <a rel=\"noopener, noreferrer nofollow\" href=\"https:\/\/help.netflix.com\/es-es\/node\/24926\" target=\"_blank\">eliminated<\/a> the basic plan devoid of ads. Previously priced at \u00a09.99 euros\u00a0, this was the most affordable option for watching content without interruptions. Users who subscribed to this plan will be required to switch to a different tier. This plan also had restrictions such as no simultaneous device usage, no extra subscribers, no downloads, limited broadcasting to devices like Chromecast, and supported only HD resolution (720p). Currently, Netflix now offers three plans:<\/p>\n<ul>\n<li><strong>Standard with ads:<\/strong> 6.99 euros (includes ads, Full HD, and a limited catalog)<\/li>\n<li><strong>Standard:<\/strong> 13.99 euros (ad-free, Full HD, and full catalog)<\/li>\n<li><strong>Premium:<\/strong> 19.99 euros (ad-free, 4K resolution, and full catalog)<\/li>\n<\/ul>\n<p><!-- BREAK 2 --><\/p>\n<h2>Netflix&#8217;s Strategy is Working<\/h2>\n<p>You might think that this reversal\u2014asking users to pay for ads\u2014would negatively impact Netflix, but the data tells a different story. The platform revealed in May that it had amassed \u00a094 million users\u00a0 subscribed to ad-supported plans, a significant increase from \u00a070 million\u00a0 in November 2023. This demonstrates a significant pivot from the original vision of a premium, ad-free experience that set it apart from traditional television. With heightened competition and a broader economic recession, viewers increasingly seek out budget-friendly options, even if that means consuming ads.<\/p>\n<p><!-- BREAK 3 -->  <\/p>\n<div class=\"article-asset article-asset-normal article-asset-center\">\n<div class=\"desvio-container\">\n<div class=\"desvio\">\n<div class=\"desvio-figure js-desvio-figure\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n<h2>The Compelling Nature of Ads<\/h2>\n<p>However, users are not gravitating toward ads out of preference; they are left with few alternatives. The \u00a0price gap\u00a0 between the now-defunct lowest tier and the next tier (which is ad-free) is nearly double. Many users simply cannot afford this leap, making the once-optional ad-supported plan a critical growth mechanism for the industry.<\/p>\n<p><!-- BREAK 4 -->  <\/p>\n<h2>Compensating for Price Increases<\/h2>\n<p>Streaming subscribers have been witnessing price hikes over the past few years. Between \u00a02020 and 2024\u00a0, most platforms experienced an inflation of subscription prices ranging from \u00a030% to 50%\u00a0. For instance, Netflix&#8217;s standard plan surged from \u00a0\u20ac7.99 to \u20ac12.99\u00a0, while Disney+ raised its prices by \u00a017%\u00a0. As these increases became unsustainable, companies have started adopting advertising as a way to provide price reductions, effectively disguising more expensive plans under the guise of lower costs.&#8221; The revenue generated from ads now frequently surpasses the loss of income from lowered subscription prices.<\/p>\n<p><!-- BREAK 5 -->  <\/p>\n<h2>The Rise of Ultra-Economy Ad Plans<\/h2>\n<p>What was once considered a minor inconvenience, ads have now evolved into a core business strategy. We&#8217;re witnessing a \u00a0segmentation\u00a0 in the market, split between those willing to pay \u00a0\u20ac15 to \u20ac20\u00a0 monthly for an uninterrupted experience and the 70-80% of users who opt for platforms with ads, paying between \u00a0\u20ac6 and \u20ac8\u00a0. This trend isn&#8217;t new; it mirrors a divide seen in the \u00a01990s\u00a0 between premium cable subscribers and those watching over-the-air television.<\/p>\n<p><!-- BREAK 6 -->  <\/p>\n<p>Netflix\u2019s elimination of its basic ad-free plan signals a critical transformation in consumer behavior and the streaming marketplace. As ads become mainstream in a space once reserved for opt-out subscriptions, Netflix has positioned itself significantly within the current economic climate, appealing to cost-conscious viewers who prioritize content accessibility over an uninterrupted viewing experience. The future will undoubtedly see a reshaping of how content is delivered and monetized, leaving audiences to adapt to new forms of consumption.<\/p>\n<p><br \/>\n<br \/><a href=\"https:\/\/teknomers.com\/category\/general\/\" rel=\"dofollow\">General News &#8211; 2<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Netflix&#8217;s Bold Move: Eliminating the Cheapest Ad-Free Plan Just a few days ago, Netflix announced that it completely eliminated the \u00a0cheapest plan\u00a0 with \u00a0ads\u00a0, revealing a startling but lucrative truth: it compensates to lose the lowest tier, which did not feature any advertisements. This strategic shift is a pivotal change in the landscape of streaming [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":161173,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36399],"tags":[19909,31210,40149,10778],"class_list":["post-161172","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-ads","tag-affordable","tag-pricey","tag-profitable"],"_links":{"self":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts\/161172","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/comments?post=161172"}],"version-history":[{"count":0,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts\/161172\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/media\/161173"}],"wp:attachment":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/media?parent=161172"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/categories?post=161172"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/tags?post=161172"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}