Netflix Moves into Ad-Supported Streaming: Cause for Concern or a Normal Transition?

As of 2023, Netflix is the largest streaming-video provider. However, it faces increased competition, as well as slower growth in subscriptions, which have caused it to reconsider its past practices. This case describes the history of Netflix's business model and the antecedents that have led it to make some significant changes—the most important of which is an ad-supported subscription option. It is also engaged in cost-cutting measures, discouraging password sharing, and even making a small foray into video gaming.

This case is suitable for a capstone strategy course or an advanced elective in competitive strategy at the MBA level. It has been used by MBAs and executives (both in the United States and in Europe) in classes covering strategic management.