- Netflix’s cheapest ad-supported plan, launched in November 2022, hasn’t achieved the same success as its competitors.
- While Netflix has a larger subscriber base, on the ad-supported plan, the numbers are comparable to Disney+ and other platforms.
- Most users who opt for the ad-supported plan are new or previously canceled subscribers, rather than existing customers switching plans.
Netflix has a much larger subscriber base than any other streaming platform. However, its cheaper priced ad-supported plan launched in November 2022 has yet to catch on with the same success as its rivals.
In March, four months after its launch, the ad-supported tier that Netflix offers in the US at $6.99 per month, had 937,600 subscribers, compared to 863,790 for the ad-supported plan of Disney+, which debuted a few weeks after Netflix. Data belongs to subscription analytics firm Antenna.
Thus, although in the “common” plan Netflix has many more subscribers than Disney +, in the plan with advertising the relationship is even.
The problem, according to the WSJ, is that Netflix is competing with rivals that have been in the advertising business much longer. Plus, they have subscriber bases used to bigger ads. Hulu, part of the Disney holding company, for example, had 20 million ad-supported subscribers in the United States in March and Peacock (NBCUniversal) had 15.5 million.
Paramount+, for its part, had 10.8 million in March and WBD (from Warner Bros Discovery), 3.6 million, always according to information from Antenna.
Netflix will host its first upfront presentation to advertisers this week.
I look at the state of the steaming ad push with help from @AntennaData.
— Lucas Shaw (@Lucas_Shaw) May 15, 2023
ad-supported netflix
A report of Bloomberg last March it said that the majority of users who pay less and don’t mind seeing ads in the middle of series and movies are new customers or customers who had canceled their subscription, and not people who have changed plans.
Ad-supported plans are the new strategy of streaming services to boost subscriptions, which slowed down with the arrival of the economic crisis.
The idea is to seek to earn more revenue per subscriber by offering lower-cost plans that allow users to pay less in exchange for viewing ads.
Since July of last year, Netflix has partnered with Microsoft in the global advertising business. The company founded by Bill Gates is managing the technology and sales of the new ad-supported plan offering.
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