Netflix may be forced to make a controversial change and you are not going to like it

With users paying between £6 and £14 per month to watch Netflix, the concept of then showing adverts between a boxset binge is unlikely to go down well but some of the firm’s biggest competitors are already doing it.

Although the new Disney+ service remains totally advert free, HBO Max and Paramount Plus recently launched ad-supported tiers in the US.

Along with showing adverts, Nathanson also said that Netflix may need to expand its catalogue of content to show live sporting events.

“Netflix may want to add sports to a more premium tier, helping to boost ARPU, gain exposure to in game advertising and broaden the appeal of its service in an increasingly competitive market,” Nathanson said.

“We think that an ad-supported tier or live sports would be the way to go to penetrate harder to reach customer segments and markets, especially in low-ARPU emerging regions.”