In recent months, Netflix has been involved in a series of controversies over its new plans to try to regain market leadership and increase profits after a violent drop in subscriber volume. Measures such as the “cheaper” plan with ads and the blocking of password sharing ended up generating controversy on social networks, but it seems that this ended up being positive for the company.
About one million accounts are already enrolled in the Netflix ad-supported plan in the United States, according to internal data obtained by Bloomberg. The new plan was first rolled out in early November and is believed to have gotten off to a slow start.
In January, however, 19% of new US subscriptions opted for the $6.99 ad plan, according to analytics firm Antenna.
Bloomberg warns that the internal data it obtained is “at least” a month old and does not account for multiple users watching through the same account. But the numbers suggest that Netflix is finding its way with the new revenue stream, after having been extremely dependent on subscriber revenue for most of its history. And Bloomberg notes that ad-supported subscribers appear to be new to the service rather than users who came from a traditional ad-free plan.
Antenna’s analysis suggests that Netflix’s shift to an ad-supported model was slower than competitors HBO Max and Disney Plus when they introduced their ad tiers in June 2021 and December 2022.
Despite the growth, users of the ad-supported plan represent a small portion of Netflix’s US subscriber base of 74 million. That could change in the coming months, however, as the company’s promised crackdown on password sharing rolls out more widely.
Do you find it advantageous to subscribe to Netflix with ads?
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