Netflix is considering offering a free plan with ads in the future. However, the company clarified that it is not currently working on any such offer and there are no plans to launch it in the near future.
During its Q2 2026 earnings call, Netflix CEO Ted Sarandos said: “Free offering may make sense in some markets, but we also need to be careful that it doesn’t impact paid plans.”
Focus on the balance between increasing reach and profits
The company says its priority is to make Netflix accessible to more and more people and constantly expand its content library. It also wants to protect the long-term profits of its subscription business. Sarandos said that such a plan could only succeed in any potential market if there was a strong and widespread advertising business. According to him, it will also be important to maintain a clear distinction between real offers and paid plans.
Eye on viewership, AI and advertising business
According to Netflix, audience share remains strong on the platform. Total viewing hours increased by 2% in the first half of 2026, compared to 1.5% in the same period last year. The company is increasing its use of technology to improve its content creation, recommendation systems, and operations.
The company also said that manufacturers are now starting to use generative AI in production. Currently, AI has been used in about 300 films and TV shows, most of which were used during post-production. Meanwhile, advertising and gaming companies are still in their early stages.
The company estimates that its advertising business could generate $3 billion in revenue by the end of 2026. Under this strategy, Netflix is making gradual changes in the direction of expanding its business.
