Netflix expansion of advertising-supported models

Netflix has moved from evaluating the feasibility of an ad-supported model to announcing a specific expansion plan. Initially, the company considered launching a free, advertising-funded tier in select markets, provided the advertising business could grow enough to sustain it without cannibalizing paid subscriptions.

By late September, Netflix announced it will introduce advertisements to its service in 15 new countries, including Denmark, starting in March 2027. This expansion will cover nine European nations as well as parts of the Middle East and Africa. The new tier is intended to serve as a cheaper alternative to existing models, featuring short advertisements appearing before and during selected content.

In a more detailed update regarding the Nordic markets, Netflix confirmed that Denmark and Norway will receive the ad-supported tier on March 1, 2027. Amy Reinhard, Netflix’s President of Advertising, stated the move aims to “strengthen collaborations with global and local partners while providing users with more viewing options.”

Recent updates clarify that the March 1, 2027, rollout in Europe will encompass nine markets: Austria, Belgium, Denmark, Ireland, the Netherlands, Norway, Poland, Sweden, and Switzerland. This expansion is part of a broader strategy to increase advertising presence across Europe, the Middle East, and Africa. Netflix projects its advertising revenue could reach approximately $3 billion in 2027, following earlier implementations in regions including Canada, Mexico, and the USA.

During a media event in London, executives including Amy Reinhard and Ed Couchman, Head of Advertising UK, detailed how the initiative aims to nearly triple the company’s advertising presence in Europe. While specific pricing for the new markets remains undisclosed, existing ad-supported plans in regions such as Germany and Italy have been noted at approximately 7 euros per month.