Netflix's Affordable Ad-Supported Plan Drives 40% of New Subscribers Amidst Intense Streaming Competition
Updated: Aug 26
Netflix's ad-supported tier has reached 40 million global monthly active users, up from 5 million a year ago. 40% of all sign-ups come from ad-supported plans in countries where they are available. The majority of new subscribers in the fourth quarter came from ad-supported plans.
This surge in users is a testament to the success of Netflix's strategy to attract new subscribers with its more affordable plan.
The streaming industry is currently facing intense competition, prompting companies to introduce bundles and innovative offerings to retain their customer base. Netflix's ad-supported plan, launched in November 2022, has proven to be a popular choice, with 40% of all sign-ups coming from these plans in countries where they are available.
In a noteworthy development, data from research firm Antenna revealed that the majority of gross subscriber additions in the fourth quarter of last year came from ad-supported plans. This indicates a growing trend among consumers who are opting for more cost-effective options.
To further enhance its advertising capabilities and provide clients with new opportunities to engage with users, Netflix has announced plans to launch an in-house advertising technology platform by the end of 2025. The company will collaborate with industry leaders such as Trade Desk, Google Display & Video 360, and ad-tech firm Magnite to accelerate automated ad buying.
Netflix's ad-tier plan is priced at $6.99 per month, making it a competitive option compared to other streaming services. Warner Bros Discovery's streaming service Max offers a monthly plan at $9.99, while Walt Disney's Disney+ is priced at $7.99 per month. In response to market dynamics, Comcast-owned streaming service Peacock recently announced a price increase, raising its ad-supported plan to $7.99 per month.
Netflix's ad-supported tier has reached 40 million global monthly active users, up from 5 million a year ago.
40% of all sign-ups come from ad-supported plans in countries where they are available.
The majority of new subscribers in the fourth quarter came from ad-supported plans.
Source: REUTERS
