Netflix’s latest price increase has highlighted a growing trend in the streaming industry, as platforms push viewers towards ad-supported options. The company raised its standard ad-free plan to $19.99 per month, while its ad tier now costs $8.99.
The move reflects a broader strategy across services such as Disney+, HBO Max, Peacock and Paramount+, where ad-supported tiers offer significant savings. Consumers subscribing to multiple platforms can pay around $75 for ad-free plans, or $40 for ad-supported options, making the latter increasingly attractive.
Streaming executives publicly claim parity between ad-supported and ad-free revenue, but advertising experts note that targeted ads are often more profitable. Amazon Prime Video has even turned on ads for all users, charging $5 per month to remove them. Live sports programming, common across platforms, further strengthens the role of advertising in revenue models.
Apple remains a rare exception, avoiding ads except for sports, with no immediate plans to introduce them.
With the price hike of subscription-based streaming services and living expenses increase, streaming companies are leaning towards ad-supported models, signalling a new phase in the industry where avoiding ads may become a premium choice rather than the standard.
