Netflix is reportedly planning to launch a free, ad-supported tier in select markets, marking a significant change in its business strategy. According to sources cited by Bloomberg, this new tier will primarily target audiences in Europe and Asia. It remains uncertain whether India will be included in this rollout, but there is potential for it to be introduced in the country. If implemented, users in India could access Netflix content for free, albeit with advertisements.

The report indicates that Netflix is in the early stages of discussions regarding this potential move. The company previously experimented with a free service in Kenya, offering a limited selection of content, but eventually discontinued it. The proposed free tier is expected to follow a similar model, providing a curated and restricted library of content, focusing on established markets such as Japan and Germany.

This shift comes as Netflix faces increasing competition from rivals like Disney+, Amazon Prime Video, and HBO Max. To stay competitive, Netflix has made several strategic changes in recent years, including cracking down on password sharing and raising subscription prices. In 2022, the company introduced an ad-supported tier to attract budget-conscious customers and tap into advertising revenue.

Despite these efforts, Netflix's subscriber growth has plateaued in some mature markets. Introducing a free ad-supported plan could attract viewers who are hesitant to pay for a subscription while generating additional revenue through ads. However, the company reportedly does not plan to launch this free option in the US, where its current subscription models are already highly saturated.

While Netflix has not yet made any official announcements, the prospect of a free, ad-supported tier is likely to attract significant interest in India if it launches there. Competing platforms like Disney+ Hotstar and Zee5 already offer free content with ads. Notably, Netflix offers some of the lowest-priced plans in India, starting at Rs 149 for the basic mobile plan and going up to Rs 649 for the premium monthly subscription.