Starting Sept. 24, Netflix has announced the introduction of an ad supported subscription tier, marketing a departure from its long-standing commitment to ad free streaming. This decision, driven by increasing competition and a need to diversify revenue, has sparked various reactions among users and college students.
For many students on campus, Netflix has been a main source of entertainment. It provides an extensive array of movies and series that can be enjoyed during late night study sessions or weekend binge watching. However, with the introduction of advertisements, some students are voicing concerns about the impact on their viewing experience.
Ellie Herreman, junior communications major, said, “I would definitely watch Netflix a lot less. I go to Netflix for the reason of not wanting to sit through ads.” Herreman expressed her concerns for the upcoming changes to Netflix and how her experience on the platform will change. Herreman said, “The quality of the content itself would probably stay the same, but not the experience. Nothing is ever the same with ads.”
“If Netflix starts using ads, why not just use any other platform? I would.” – Ellie Herreman, junior communications major
Conversely, the ad supported tier, which is expected to be cheaper than the existing subscription plans, could appeal to budget conscious students. Waros Ngamsiriudom, Associate Professor in advertising, said, “This is a good option for students who don’t want to pay the original price of $11.99 and now can pay the $6.99 for the basic plan.” This could resonate with students who are looking for ways to save money amongst rising tuition and living expenses.
Pointing out the potential dynamics of the new advertising model, Ngamsiriudom said, “If I had to guess, it’s more likely the advertiser will reach out to Netflix to put an ad on their show and pay them to do so.” The shift from standard plan to basic plan with ads will help the company keep up with competitors. Ngamsiriudom said, “The previous standard pricing model likely left Netflix at a disadvantage compared to entertainment companies like Hulu, which offer lower monthly subscription prices while incorporating ads.”
Despite mixed feelings about the ads, Netflix’s decision will align with other streaming services like Hulu and Peacock, who have successfully incorporated advertisements into their models. Netflix will now be challenged to balance profitability with user satisfaction, especially within a demographic group that values seamless entertainment experiences.
Netflix was contacted but did not comment.
