Netflix may soon offer a free streaming plan supported by advertisements, according to the company's CEO, Ted Sarandos. Although Netflix is not planning to launch the service immediately, the company says it is exploring the idea for some countries.

Speaking during Netflix's second-quarter 2026 earnings call, Sarandos said that a free plan "could make sense in some markets." However, he added that the company must be careful that a free option does not reduce the number of people who pay for its existing subscription plans.

Netflix said its main goal is to make the platform more accessible to viewers while continuing to grow its library of movies, TV shows and original content. The company hopes that offering more content will attract new users from around the world.

At the same time, Netflix wants to protect its subscription-based business, which remains its biggest source of income. Sarandos explained that if a free plan is introduced, it must be clearly different from the paid plans. He also said that such a service would only work well in countries where Netflix has a strong advertising business.

The company reported that viewer engagement continues to grow. During the first half of 2026, total viewing hours increased by 2%, compared with 1.5% during the same period last year. This shows that people are spending more time watching content on Netflix.

Netflix is also using technology to improve its services. The company said it is investing in better content recommendations, smoother operations and improved production methods. It revealed that filmmakers are increasingly using generative Artificial Intelligence (AI), especially during post-production. Around 300 Netflix movies and TV shows have already used AI tools, mainly for editing and visual enhancements after filming.

In addition, Netflix is continuing to expand its advertising and gaming businesses. While both are still in the early stages of growth, the company expects its advertising business to generate around $3 billion in revenue by the end of 2026.

If introduced, a free ad-supported plan could help Netflix reach millions of new viewers while offering another way for people to enjoy its content without paying a monthly subscription fee.

Source: Social Media