Netflix has ended its long-standing 30-day free trial, setting the stage for a potential new normal that could create a new barrier for other companies trying to break out of the crowded streaming market.
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The streaming giant announced that it plans to phase out free trials, which have been a staple of the company for nearly two decades. A Netflix spokesperson told Variety that it is “looking at a variety of marketing initiatives in the U.S. to attract new members and provide them with a great Netflix experience.” The new strategy is unlikely to be adopted by other streaming services, experts say.
“Netflix is executing this particular strategy in the US at a very mature stage,” Ezra Eeman, head of Digital, Transformation and Platforms at the European Broadcasting Union, said via email. “They’ve likely calculated that they’re simply burning money to keep their current free trial program going by bringing in a largely stubborn group of non-payers. Optimizing for these types of micro-conversions could undermine the long-term relationships they’re after.”
The company is reallocating resources and manpower to its new Netflix Watch Free platform, which will allow potential users to watch a selection of free movies and TV episodes without a membership. The company is keeping most of its content for paying subscribers only.
