How Much Will Netflix Make From This Big Change in Strategy?

By Parkev Tatevosian, CFA – Sep 22, 2022 at 7:00AM

NASDAQ: NFLX

Netflix

Market Cap

$263B

Today's Change

(0.40%) $2.46

Current Price

$611.93

Price as of May 9, 2024, 10:52 a.m. ET

Adding an ad-supported tier can generate billions in revenue for the streaming pioneer.

Netflix (NFLX 0.40%) has long avoided adding an ad-supported tier to its service. Management has changed that strategy and is expecting to launch the lower-priced version later this year. In this video, I discuss how much money could be coming to Netflix as a result.

Stock prices used were the afternoon prices of Sept. 19, 2022. The video was published on Sept. 20, 2022.

Parkev Tatevosian has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix. The Motley Fool has a disclosure policy.

Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through fool.com/parkev, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.