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Netflix Basic With Ads Plan Started Slow

Ed Abbas by Ed Abbas
March 3, 2023
Reading Time: 2 mins read
Netflix Basic With Ads Plan Started Slow
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Initial reports indicate that Netflix’s ad-supported subscription plan is struggling to gain traction. 10%  or less of new subscribers in the United States last month opted for the ad-supported plan, but the corporation is in it for the long haul, as its executives explain.

Netflix Numbers

According to analytics firm Antenna, only 9% of new Netflix users in the United States opted for the ad-supported streaming tier last month. During its launch month in 2021, 15% of new subscribers reportedly chose the ad-supported subscription plan option offered by rival service HBO Max. On November 3rd, Netflix introduced a new “Basic with Ads” plan at $6.99 USD per month, compared to the ad-free plan’s $9.99 USD to $19.99 USD.

Digiday stated that Netflix has reimbursed advertisers for money after falling short of viewing pledges by as much as 20%, so the numbers don’t come as a huge surprise. However, the new information provides further proof that Netflix’s transition from a subscription-only to a hybrid funding model is off to a sluggish start.

Source (Netflix Website)

A Netflix representative told The Wall Street Journal, “It’s still very early days for our ad-supported tier and we’re happy with its debut and engagement, as well as the enthusiasm of advertisers to collaborate with Netflix.” However, Netflix questioned the veracity of Antenna’s numbers, which are derived from data collected from a variety of sources other than Netflix’s own customers.

Tags: AdvertisingNetflix

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