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The Ratings Game: Netflix ad tier could bring in an extra $1 billion a year, says analyst

Netflix Inc. has resisted including an ad-supported tier to its platform, but one analyst says that such a move would give the company a big boost on a key metric.

“An ad-supported tier could provide a lift to free-cash flow, reducing the need for Netflix NFLX, -0.73% to raise debt frequently, especially beyond 2021 into a potentially rising rate environment,” Instinet’s Mark Kelley wrote in a note to clients Friday.

Though many Netflix users have said they’d leave the service if the company stopped being ad-free, an ads-for-all experience is probably not the route Netflix would choose if it did decide to introduce ads on the platform.

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