More People Are Signing Up for Netflix With Ads. Should You?

In recent years, many people have made the decision to cut the cord with cable and replace it with a streaming service or two instead. Doing so can often be a financially sound move that results in big savings. And Netflix has long been a popular service to turn to for streaming content.

Meanwhile, in 2022, Netflix introduced an ad-supported plan designed to attract budget-conscious customers. Since then, 23 million users have signed up. Of course, not all of those are U.S. users, since Netflix's ad-supported plan is available in several different countries. But it's fair to assume that a good chunk of that growth came from U.S. subscribers since the ad-supported tier is an option here.

If you're looking to add a streaming service to your personal lineup, you may be inclined to opt for Netflix. But should you sign up for ad-supported content to save money? Or treat yourself to a higher tier?

It's a matter of finances and usage

The cost of Netflix's ad-supported content is $6.99 per month. The standard plan, which does not subject users to ads, is $15.49 per month. And there's also the premium tier, which costs $22.99 per month. The premium tier lets you watch content on four devices, versus only two with the standard plan. It has some additional benefits you can explore here.

If you're not sure whether to get the ad-supported plan, you need to ask yourself two questions:

• How are my finances looking?
• How often do I plan to use Netflix?

If your financial situation isn't so great -- say, it's been months since you've added money to your savings and you're carrying high-interest debt that's been tough to shake -- then you may want to sign up for the cheapest plan possible for the time being. You can always upgrade as your financial picture improves.

On the other hand, if you're doing just fine financially, you may be able to afford the standard $15.49 plan that's ad free. That could make for a much more pleasant viewing experience.

Meanwhile, if you don't plan to watch Netflix all that often and are really only signing up for one specific series or to have a backup option for your go-to streaming service, then you may want to opt for the cheapest plan. The logic is that if you're not going to use Netflix very often, the occasional show with ads may not be so bothersome.

However, if you anticipate watching Netflix regularly, then you may want to go ad free if you can swing it. Why subject yourself to interruptions when you don't have to?

You're not committing to Netflix either way

Ultimately, if you're thinking about signing up for Netflix and aren't sure which tier to choose, you could always try the ad-supported plan and upgrade if you find it too annoying and can afford to pay more. The nice thing about Netflix is that you're not signing a contract, so you can switch plans whenever you want to.

Along these lines, you could always sign up for Netflix with ads and upgrade if you find yourself watching it more often than expected. Since you have that flexibility, you really don't have to stress too much about the decision.