Netflix Raises Prices on Ad-Free Plans, Pushing More Users to Cheaper Ad-Supported Tier to Rapidly Scale Ad Revenue

Netflix is raising prices for its ad-free plans to push more users towards its new cheaper ad-supported plan. This will help Netflix attract more advertisers.

The ad-supported plan is currently $6.99/month. Netflix will likely keep this price low to rapidly expand its ad-supported subscriber base.

Once the ad-supported subscriber base reaches critical mass, Netflix can charge higher ad rates and make more revenue per ad-supported subscriber than on its ad-free plans.

Analysts estimate Netflix could make $10/month or more in ad revenue per ad-supported subscriber once the base scales up.

By increasing prices and expanding its ad-supported tier, Netflix aims to increase overall revenue per subscriber across both ad-supported and ad-free plans.