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Netflix's ‘Ad-Supported’ tier surges: Reaches 40 million global users

Livemint

Livemint · 1y ago

Netflix's ‘Ad-Supported’ tier surges: Reaches 40 million global users

Netflix has seen a significant increase in the adoption of its ad-supported tier, with global monthly active users reaching 40 million, up from five million in a year. This growth highlights the success of Netflix's strategy to attract new users with a more affordable plan. The streaming industry is fiercely competitive, with companies offering bundles to retain subscribers. Netflix plans to launch an internal advertising technology platform by 2025 to enhance its advertising capabilities, and will collaborate with industry leaders to accelerate automated ad buying. The ad-supported plan is priced at $6.99 per month, offering a competitive alternative to other streaming services.

Related News

Netflix's efforts to grow ad tier in focus as subscriber growth slows

Economic Times

Economic Times · 1y ago

Netflix's efforts to grow ad tier in focus as subscriber growth slows

Netflix's subscriber growth has slowed in the second quarter of 2023, with an estimated 4.82 million new subscribers added, the lowest number in five quarters. This decline can be attributed to factors such as a crackdown on password sharing and viewers shifting their attention to summer sporting events. However, Netflix's efforts to introduce a lower-priced ad-supported tier have resulted in strong ad revenue growth, which is expected to have more than doubled in the June quarter. The company's revenue is projected to rise by 16.4% to $9.53 billion. Netflix's focus on original shows and its expansion of the ad-supported plan will be closely watched by investors.

Netflix’s next act will be slower to catch on

Livemint

Livemint · 1y ago

Netflix’s next act will be slower to catch on

Netflix's ad-supported plans, launched in late 2022, are gaining traction as 45% of new sign-ups choose these cheaper options. However, the ad business is off to a slow start with estimates of under $800 million in ad-supported revenue for the first half of 2022, representing 4% of Netflix's total revenue. The company doesn't expect advertising to be a primary revenue driver in the near future, but is still building capabilities to meet advertiser demands. With Amazon also entering the ad-supported streaming market, Netflix will need to scale up its operations to effectively serve the portion of its massive subscriber base willing to watch ads.

'Indians more mindful of money': Ted Sarandos tells Nikhil Kamath why Netflix India is tricky - BusinessToday

Business Today

Business Today · 3m ago

'Indians more mindful of money': Ted Sarandos tells Nikhil Kamath why Netflix India is tricky - BusinessToday

Ted Sarandos discussed Netflix's challenges in India, primarily due to cultural resistance against automated monthly charges. Indians are more mindful of their spending, preferring not to pay recurring fees. Netflix's solution includes a subsidized ad tier, attracting nearly 50% of new Indian users. While Netflix remains a subscription service, ads may contribute up to 20% of revenue. The key lies in balancing ad load and fees to maintain consumer interest without compromising content quality.

Netflix's sports push likely fueled subscriber growth in holiday quarter

Economic Times

Economic Times · 8m ago

Netflix's sports push likely fueled subscriber growth in holiday quarter

Netflix's strategic focus on sports content, including events like the Jake Paul vs. Mike Tyson boxing match and NFL games, reportedly led to over 9 million subscriber additions in the holiday quarter. High-profile sports events attracted young viewers and advertisers, enhancing Netflix's ad-supported model. This growth, supported by the return of shows like "Squid Game," indicates a shift toward profitability over subscriber count. Future sports and original content promise continued success in 2025.

Netflix is different now — and there’s no going back

The Verge

The Verge · 1y ago

Netflix is different now — and there’s no going back

Netflix is adapting and making significant changes to stay ahead in the competitive streaming industry. In response to a dwindling subscriber base, the company launched a cheaper, ad-supported tier that quickly gained popularity. Netflix also cracked down on password sharing and implemented price hikes, leading to increased revenue. The company's focus is now on scaling its advertising business and making its ads plan more attractive. Additionally, Netflix's $5 billion deal with WWE Monday Night Raw provides another revenue stream. These strategic moves showcase Netflix's evolution as it navigates the changing streaming landscape.

Netflix will show generative AI ads midway through streams in 2026

Arstechnica

Arstechnica · 4m ago

Netflix will show generative AI ads midway through streams in 2026

Netflix plans to introduce generative AI ads during streams in 2026 as part of its strategy to boost ad revenue. At its advertising event, Netflix highlighted the effectiveness of mid-roll and pause ads, which it has been testing since mid-2024. The ad-supported tier launched in 2022 and has grown to 94 million subscribers, with ad formats poised for global expansion. This move aligns Netflix with other streaming platforms adopting innovative advertising strategies.

Netflix adds 2.6 million more subscribers in July despite password-sharing crackdown

Economic Times

Economic Times · 2y ago

Netflix adds 2.6 million more subscribers in July despite password-sharing crackdown

Despite password-sharing crackdowns, Netflix's US subscriber base grew by 2.6 million in July. While this was lower than June's spike, it indicates that the paid-sharing rollout is effective. About 23% of sign-ups opted for the ad-supported plan. Globally, Netflix added 5.9 million subscribers in Q2, with a strong response in the US and Canada.

All Signs Point to Apple TV+ Getting Ads

Gizmodo

Gizmodo · 1y ago

All Signs Point to Apple TV+ Getting Ads

Apple is reportedly considering introducing an ad-supported tier for its streaming service, Apple TV+. The company recently hired a 14-year ad executive from NBCUniversal to strengthen its video advertising team. While Apple has not officially announced plans for an ad-supported tier, it has already started showing ads for certain offerings and has been bringing in ad executives from various media companies. With other major streaming services like Netflix, Disney+, HBO Max, and Amazon Prime Video introducing ads, it seems likely that Apple will follow suit to boost revenue.

Netflix Eyes Ways to Make Money From Videogames in Potential Pivot

Livemint

Livemint · 1y ago

Netflix Eyes Ways to Make Money From Videogames in Potential Pivot

Netflix is exploring ways to monetize its gaming offerings, signaling a potential shift in strategy. The streaming giant is considering introducing in-app purchases, charging for more sophisticated games, or offering games with ads to subscribers of its ad-supported tier. The discussions reflect Netflix's ongoing balance between customer experience and revenue generation. While the number of daily Netflix game players remains small, the company sees gaming as a long-term bet. Netflix has been acquiring gaming studios and developing games based on its original shows and movies.

Can Netflix keep flexing its pricing muscle?

Livemint

Livemint · 11m ago

Can Netflix keep flexing its pricing muscle?

Netflix's third-quarter results showcase its success in the streaming market, with a $2.9 billion operating profit and higher-than-expected revenue and subscriber growth. The stock rose 5%, but some investors are looking for potential price hikes as Netflix currently offers a cheaper ad-supported plan compared to its competitors. However, Netflix has expressed its love for the low price point and increased accessibility of its ad plan, indicating that a major price increase may not be imminent. Nonetheless, with an aim to reach 300 million paid members soon, the streaming giant will face challenges in attracting new viewers.

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