Netflix has the largest price gap between ad-free and ad-supported tiers as it also seeks more sports. Ampere forecasts global streaming revenue will exceed $200 billion in 2030.

Netflix’s Ad-Free Price Gap Widens as Industry Revenue Grows

Inside The Stream

# Full Transcript

**Podcast:** Inside The Stream

## Transcript

Netflix has the largest price gap between ad-free and ad-supported tiers as it also seeks more sports. Ampere forecasts global streaming revenue will exceed $200 billion in 2030. Listen on.

Welcome to this week's edition of Inside The Stream. This is Will Richman from Video News and that was Colin Dixon there at the top from nScreenMedia. Colin, how's everything going for you this week? It's going good. Just finished watching Drops of God on Apple TV, which I thought was super. This was adapted from a manga in Japan and that was a really super series and you know, I'm really digging Apple TV.

There's lots of shows I've been watching on there, including Shrink, latest season of Shrinking. So gosh, am I becoming an Apple fan? I don't. And you're using your Apple TV device, so doubly so. Well, I don't watch a lot on Amazon, but I just watched the Paul McCartney doc, Man on the Run, which I also recommended. I thought it was great. Yeah, yeah, you enjoyed that. And talking of all these S-BODs, we've got a lot of S-BOD data this week, right?

Yeah, we do. And so we're getting started with Netflix's price increase, which they announced last week. And we're going to take it from there. We are. And I think Netflix hates me, Will, because they're making me and everybody that likes to watch ad-free pay $2 more. They've increased the price of the cheapest ad-free plan from $17.99 to $19.99.

And they're only asking those people that are watching ads to pay $1 more. They're paying now $8.99. And those people that want the ultimate Netflix experience, the premium people, are paying $26.99, also $2 more. So this is, I think it's not an excessive price increase, but it's still a substantial price increase.

And what I did was I sort of ran to my trusty spreadsheet, Will, and this data really does suggest to me that Netflix is really trying to push people like me, who likes to watch without ads, to start watching them. Here's why. They now have the biggest ad-free viewing penalty in the industry. And it is $11, that penalty.

You have to pay $11 more to watch without ads. The next biggest ad-free penalty is HBO Max, which is asking you to pay $7.50 more to watch ad-free. Hulu and Disney Plus, they're $7 and Peacock, $6. So this is really, I think, a substantial difference.

And I don't know about you, Will, but I just find it really hard to believe that Netflix is earning $11 from people watching with ads. From the ads, I think they're making me pay more than my fair share. But maybe that's a discussion for another time. Maybe that's just me feeling like I'm being unduly penalized.

So what do you think? Are you going to continue to pay your Netflix subscription at the $1 or $2 extras? Well, for sure. And I think I've said this before, but I actually have a standard plan with ads. And I'll note, Colin, that my price is going from $8 to $9 from a 12% increase. Your price is going from $18 to $20 ...

Netflix’s Ad-Free Price Gap Widens as Industry Revenue Grows

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Netflix’s Ad-Free Price Gap Widens as Industry Revenue Grows

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.