Some streaming services offer both ad-supported and ad-less options for their members to subscribe to. While the version with advertisements is cheaper, paid advertisements make up for their lost revenue for the discounted service.
Netflix does show previews for similar shows or movies to the one you were watching during the ending credits.
They usually consist of a short trailer and are meant to give you an idea of what you should watch next, seamlessly transitioning the viewer to the newer content.
Does Netflix Have Ads?
Netflix does not have advertisements on its platform. This allows members to continuously watch shows and movies without unwanted interruptions. The closest thing to ads on Netflix is the trailers for other shows during the credits to entice you to watch similar content.
Some other streaming services, like Hulu, offer a plan that includes ads and also ones without ads. The plans that include ads are significantly cheaper than those without ads because the ads help make up revenue for the thriftier prices.
Peacock also has ads, but you can pay to have them removed as well.
Disney+, like Netflix, has no ads with its content, even though the Walt Disney Company also owns Hulu, another streaming service.
With Disney+ growing its audience with exclusive Disney, Pixar, and Marvel movies and shows, their reasoning behind this choice may be comparable to Netflix’s reasons.
Why Doesn’t Netflix Have Ads?
Netflix has, since its inception, never used marketing through ads as a form of revenue. The company believes that there is less growth opportunity in advertising for them than there is in offering uninterrupted content for its members.
Since Netflix is still the largest streaming service worldwide, it seems this strategy agrees with them.
With hundreds of millions of active subscribers drawn in by Netflix’s engaging originals, thousands of choices to watch, and new programs being added every month, Netflix is in a position to not require extra revenue from ads.
Since it started streaming in 2007, Netflix has believed that ads were unnecessary for their viewers.
Will Netflix Ever Have Ads?
Netflix has made it a point to let the world know it will never run ads. Marketing experts have not been sure if this is will hold up with an increasing number of competitors advancing on their territory.
Some of these competitors offer low-cost plans that are ad-supported and growing in popularity.
The ad-laden offerings of its competitors provide a version of their service that sacrifices convenience for money, opening up content to those frugal individuals who don’t mind advertisements.
These consumers may not be enticed by Netflix simply because they do not offer a low-cost, ad-supported option.
Why Does Hulu Have Ads But Not Netflix?
Some people just want to save cash. Hulu offers an ad-supported plan that runs at about half the price of its ad-free plan. These consumers are usually those who are used to commercials and live TV or are casual watchers who don’t spend an abundant amount of time watching movies and shows.
Ad-supported service is very similar to live TV, having quite a bit of marketing at the beginning of and during content. Netflix users pay a little more per month to get rid of these interruptions to their favorite shows and movies.
Hulu also offers a more pricey plan to watch the same content without ads.
What Netflix Plan Has No Ads?
All three of Netflix’s plans are ad-free. Even the basic plan, which is $8.99 and streams at only 720p resolution is without advertisement marketing. While other streaming services have multiple service plans including some with the option to watch ads for a lower price, Netflix does not.
The ad-free structure translates to all its plans on all compatible devices. When you download Netflix movies and shows you will also not see any ads. This is because Netflix doesn’t believe that advertising revenue is more valuable than the ability to give its consumers ad-free content.
How Does Netflix Make Money Without Ads?
Netflix’s wide variety of content including very popular originals, stand-up comedy, and children’s shows has allowed it to maintain a very loyal following. The company did not even see a drop in sales when they increased their prices by $2 in January 2019, and user numbers continue to grow.
Netflix has built up a massive number of subscribers, about 209 million of them worldwide. Each subscriber paying between $8.99 and $17.99 a month for their services means there is little chance of Netflix needing to look for extra revenue by including ads in their content.
Is Netflix Still Commercial-Free?
Netflix is still ad-free across all of its subscription plans in 2024. It has never had advertisements and assures its loyal subscribers that it will never have advertisements. Uninterrupted viewing is one way Netflix keeps its customers engaged in its shows and movies.
Netflix offers three plans for its ad-free services. The basic plan is $8.99 per month while the standard plan is $13.99, includes 1080p resolution, and the ability to watch Netflix on two devices at once.
The premium plan is its highest tier, offered at $17.99 per month, has 4K Ultra HD capability with hundreds of available 4K content, and you can watch it on up to four devices at the same time.
With customers of streaming services, whether it contains ads or not, it is all about the quality of the programs available. Netflix’s choice to never have ads in its programming stems from the fact that it has a streamlined understanding of what its subscribers want to watch.
Creating original shows and movies that consistently bring in new members, Netflix can stay ad-free even after 14 years of continuous streaming.
