Netflix considers launching free ad-supported tier in select markets

Netflix is considering the implementation of a completely free, advertising-funded access model in certain territories. Greg Peters, co-CEO of Netflix, stated during a recent investor meeting that such a format “could make sense in some markets, if the advertising business grows enough to sustain it.”

The company is evaluating the commercial impact cautiously to ensure the free tier does not cannibalize existing paid subscription plans. For the project to be viable, Netflix requires a robust advertising ecosystem in the chosen regions to cover operating costs and ensure stable profits.

This potential shift is part of a broader business model reorientation. The platform is exploring ways to increase viewer engagement through lower-cost content, such as podcasts, lifestyle programming, and the use of artificial intelligence to optimize development costs.