What Would Netflix’s Free Ad-Supported Stream TV Look Like? Pop-Up Channels, Licensed Content, More
Netflix is the leader in the worldwide streaming industry, boasting more users and a higher profit margin than any other global service. But there is one area where Netflix isn’t ahead of its competitors: free ad-supported TV (FAST) channels. Netflix does not currently offer any free content, either ad-supported or ad-free.
But that could be changing, especially as Netflix gains more experience offering ads on its platform. The company brought its “Standard with Ads” plan to market in November 2022, and reports indicate that it may start building its own advertising tools in 2024 once its deal with Microsoft for the tech giant’s advertising suite expires. Netflix co-CEO Ted Sarandos was asked about the potential for FAST offerings in January, and said that the company would be investigating the possibility sooner or later.
“We’re open to all these different models that are out there right now, but we’ve got a lot on our plate this year,” Sarandos said. “But we’re keeping an eye on that segment [FAST] for sure.”
So if Netflix does enter the FAST space at some point in the near future, what might its offerings look like? Reporting from Variety gives excellent insight as to what Netflix’s FAST plans might be. To start with, the report suggests that Netflix would be better off integrating FAST content onto its existing platform, instead of launching a new service to house free ad-supported titles.
Doing so will allow Netflix to use its FAST offerings as an upsell opportunity. FAST content would be placed right next to paywalled content, easily showing users what they can have if they decide to opt for a paid Netflix subscription. There are already more than 20 platforms that are comprised of primarily FAST content, such as Pluto TV, Tubi, and The Roku Channel. Instead of competing against these platforms, Netflix should just keep all of its FAST content on its own app.
Licensing will also likely be a big part of Netflix’s FAST strategy. Warner Bros. Discovery has licensed some of its canceled series to Tubi and The Roku Channel, as well as curated live channels to platforms like Amazon’s Freevee, but still plans to launch a FAST service of its own at some point in the future.
Netflix has a large library of originals to fall back on in order to create free streaming content. It doesn’t have a ton of series with more than a handful of seasons, but it can create so-called “pop-up” channels with a series like “Stranger Things,” which would be available for a limited time to promote a new season of the show in question. This would fit in with the company’s upsell strategy, allowing users a taste of what they can find on-demand if they pay for a subscription. Netflix could even create pop-up channels featuring SAG Award-nominated performers as the streamer will become the home of the SAG Awards starting in 2024.
There’s practically no limit to what Netflix can do with its free ad-supported content, once it decides to start offering it. There’s no official word on when Netflix will offer FAST options, but free ad-supported streaming is a great way to monetize users without forcing them to sign up for their own subscriptions. Netflix will continue to look for solutions to bring back users forced off the service by rules against password sharing, and FAST channels would be an excellent place to start.
Netflix
Netflix is a subscription video streaming service that includes on-demand access to 3,000+ movies, 2,000+ TV Shows, and Netflix Originals like Stranger Things, Squid Game, The Crown, Tiger King, and Bridgerton. They are constantly adding new shows and movies. Some of their Academy Award-winning exclusives include Roma, Marriage Story, Mank, and Ma Rainey’s Black Bottom.