Netflix may bring free streaming plans; CEO says, ‘A free offering could make sense’

Netflix CEO Ted Sarandos said the company is considering launching a free plan with ads. However, the company is not currently working on such an offering and has no near-term plans to introduce it. 

During Netflix’s Q2 2026 earnings call, Sarandos said, “A free offering could make sense in some markets, but we have to be thoughtful about cannibalisation of paid tiers.” 

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Netflix free stream plans 

The company also said that its main goals are to make Netflix more accessible to users, and it is rapidly expanding its content library to bring new viewers to the platform. At the same time, Netflix is also focused on its long-term revenue goals; a free plan could be a big decision for its subscription-based revenue. 

“We’ve got to ensure that we’ve got the right offering, the right differentiation of that offering. It’s probably also worth noting that having an effective scaled ads business in any candidate country for such an offering is clearly an important enabling factor to make those economics work,” Sarandos said.

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The company further highlighted that its viewer engagement remains strong, as people continue to spend a lot of time watching content on the platform. During the first half of 2026, total viewing hours grew by 2%, compared to 1.5% in the same period last year. Netflix also plans to leverage technology that helps improve its business across content creation, recommendations and operations.

It also revealed that producers have started using generative AI for production, and it already has around 300 movies and TV shows, where the majority of AI was used in post-production. However, Netflix says that it’s still in the early stages of growing its advertising and gaming business. Its advertising business is said to generate $3 billion in revenue by the end of 2026.

Therefore, Netflix is gradually restructuring its plans to grow the business across its operations.