• by Wayne Friedman , Staff Writer, December 12, 2023

Apparently, 41% of Netflix current subscribers were in the dark about this, according to a new study from Evercore, with 59% of Netflix users in the know.

I'm wondering if this is intentional on Netflix’s part. It’s not as if Netflix has been running national TV or social-media advertising campaigns touting this. Maybe they should, given that it has a lower price than its other subscriptions.

Surely on its platforms, consumers can more easily find this out. But Netflix still wants to grow new subscribers. Netflix is now positioned as a mature platform -- with perhaps limited growth potential in terms of new subscribers.

The analysis for some business executives is that this could stir some cannibalistic efforts on this longtime no advertising-supported streaming service. So, how to do both?

Perhaps Netflix's intervention is not to attack advertising against its existing platform or to add a wall. Subscription revenue might not be all that precious.

Veteran media analysts say the growth curve, and path to profitability, does indeed come with advertising-supported options -- and that it doesn’t have to come at the expense of the subscription-based ad-free model.

The ad-supported price can be more than half that of existing regular Netflix "Standard" plan at $15.49 a month, versus what is now called the "Standard With Ads" $6.99 plan.

To be sure, Netflix is in the driver’s seat. It is consistently in the profitability mode versus others. It has room to move. Sort of.

This U.S. is its single biggest country market. But its growth rate is now among the slowest globally.

The U.S. is a mature market that needs some help -- and so an advertising-supported second product has been an obvious consideration. But does Netflix need to shout it from the rooftops to potential customers? 

Right now much of Netflix's advertising prompts messaging around a single TV series or movie -- unlike other services such as Max, Paramount+ and Peacock, which tend to show off a multitude of very short-term clips to point out that they have lots of all kinds of programming.

Netflix committed to the ad-option a year ago after a long time of not only being reluctant but downright opposed to it.

Will it be more aggressive -- or will they find a way of positioning itself in the background, on the sidelines of sorts?