Posted on 11/12/2024 11:35:26 AM PST by JSM_Liberty
Netflix’s cheaper, ad-supported tier has reached 70 million global monthly active users two years after it was launched.
The company said Tuesday that more than 50% of its new sign-ups are for ad-supported plans in countries that offer the option. Netflix said it continues “to see positive momentum and growth across all areas of the business,” adding it has seen “steady progress across all countries’ member bases.”
Netflix launched the option in November 2022 as one of its responses to a slowdown in subscriber growth.
Recently, subscriber growth hasn’t been an issue. Last month Netflix reported it added 5.1 million subscribers during the third quarter, beating Wall Street estimates. In total, Netflix counts 282.7 million memberships across all of its pricing tiers.
Beginning next year, Netflix said it will no longer update investors on its subscriber numbers as it shifts focus toward revenue and other financial metrics as performance indicators.
When Netflix launched its ad platform two years ago, the company said Nielsen would rate its content.
Netflix in May announced it would air two National Football League games on Christmas Day this year as part of a three-year deal. On Tuesday it said it sold out of its ad inventory for the two live games.
Netflix also said it’s brought on FanDuel and Verizon as advertisers for the games. FanDuel will become the exclusive pregame sportsbook betting partner, Netflix said, and will have a sponsored in-show feature.
Media companies have been focusing on ad-supported strategies for their streaming options that woo customers with cheaper plans and also offer advertising revenue that can help move the streaming businesses toward profitability. While the ad market has been slow for traditional TV, it has grown for streaming and digital businesses.
Netflix offered its last update on its ad-supported tier in May, when it said it reached 40 million global monthly active users, nearly doubling the figure it had shared in January. That announcement came during Upfronts, when media companies make their pitches to advertisers.
Netflix also announced in May it would launch its own advertising platform, ending a partnership with Microsoft for that technology. It’s rolled out the platform in Canada and plans to launch it in the U.S. by the end of the second quarter next year. It plans to set the platform live everywhere by the end of 2025.
I am in the NO Netflix tier.
Me, too.
Pay someone to shove ads down my throat???
🤣🤣🤣🤣
That’s a no.
Yeah, same here. Why waste money to watch people who hate you, who hate your country, and hate your faith?
Me three
Welcome to the fam.
Do you folks remember when the big selling point of pay-movie-channels was that there were no commercials? Now people pay for commercials. I’m missing something. I’m not on Netflix though since I figure if I wait long enough, it’ll be on Tubi or Plex or Pluto for free (with commercials lol) and there’s not really anything that I need to see with more urgency than “when I get time”.
“Now people pay for commercials. I’m missing something.”
They are paying less for the ad supported tier, you can get a “no ads” tier but it costs more.
+1
Prime has ads now too, but they put them all in front of the movie,then no more interruptions. Preferable to Frevee’s model.
I have Netflix (ad free) and several others, but I refuse to pay for ads.
If it has ads and is free, its one thing. But to pay for ads is just stupid...
At least Freevee is totally free. I don’t like ads, but you really can’t complain about ads for free content. But I refuse to pay for ads. If there is no ad free version, I pass.
I need Prime delivery anyways, where I live, although even that’s stretching into 3 days. What I hate about Freevee is half the ads are HIV meds for black homos.
Obama being on the board is one reason.
That and Reed Hastings shelling out 7m to Kamala’s campaign.
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