Industry analysts estimate that Netflix could end up with 30 million subscribers in the US through this modality. Meanwhile, the world’s most famous streaming platform is gaining momentum
Nearly six months after the launch of advertising on the platform, Netflix is gaining momentum.
After a slow start, Netflix’s economic plan, complete with ads, has been gaining traction among US subscribers. Bloomberg reported that in its first two months Netflix had one million active users with this option. Before its launch, Netflix had projected 1.1 million by the end of 2022, which would rise to 13.3 million in the third quarter of 2023.
Industry analysts estimate that Netflix could end up with 30 million subscribers in the US in its ad-supported modality.
There were early reports that the new tier of announcements got off to a shaky start. In fact, Antenna, an analytics company, reported that in its first month, less than 10% of new subscribers opted for the ad-supported slot, making it the least popular option.
Since then, Antenna reported that almost 20% of all new US subscribers had signed up for the least expensive option. Monthly subscription to Netflix with ads costs $6.99.
The US is one of 12 markets where Netflix now sells ads.
In its latest earnings report, Netflix had 74 million subscribers in the US and 231 million worldwide.
Netflix claims that most ad-supported signups are from new subscribers or old subscribers.
Hence, very few current users have moved to the lowest cost tier.
In another twist, it had early been reported that the streamer had breached viewership guarantees by more than 20%, leading to cash back or bonus units that irritated some advertisers.
However, Netflix was also able to twist this reality. Faced with slowing subscriber numbers and stiff competition, Netflix has been looking for revenue growth strategies outside of ad sales. One of them is to end the sharing of passwords.
An estimated 100 million households around the world sign into Netflix using someone else’s password.
In addition, Netflix recently announced that it will add 40 more video games to its platform in 2023 and that more are on the way.
In an email, Stephanie Noris, President/Founder of NorBella, states: “For price-conscious consumers, those who are simply overwhelmed by the increasing number of monthly fees for streaming services, this is a good move as well. such as the potential for Netflix to upsell to higher levels.
From a media and marketing standpoint, anytime we have a greater opportunity to find audiences within highly sought after content is a positive for advertisers.
Though the numbers Initials are relatively low, increased competition and advertising options is a win, only time will tell on long-term value.”