Netflix did something strange this week and announced a reduction in ads for the ad-tier subscribers. This means that an ad-free episode will be offered up after three with ads. This will be in additional to an enablement of downloadable content. Both of these changes are clearly working to reach out to the subscribers who represent the lowest direct revenue for Netflix. It appears to be an effort to drive further increase in new subscribers, as well as encouraging the long term concept of binge watching TV shows. Naturally, everyone expects that the rest of the industry will copy suit in limited time.
Ad-tier improvement is rare good news for streaming subscribers.