Although executives did not disclose the total subscribers to the tier, they did say that the average revenue per member is higher than its standard plan.
Advertising Business Model
In the United States, Netflix’s ad-supported tier is superior to its normal, ad-free plan, and the firm is providing new features to entice more customers to switch. In both Spain and Canada, the Basic with Ads plan now supports 1080p video quality and dual streams.
Netflix is in the “crawl” phase of its advertising business model, despite its lofty goals. Recently, the company has expanded access to DoubleVerify and Integral Ad Science’s solutions and is collaborating with Nielsen to roll out digital ratings.
Netflix is in competition with the leaders of traditional TV for advertising dollars, and Microsoft has expanded its advertising infrastructure and sales operations. Netflix is delaying its crackdown on password sharing and will end its DVD-by-mail service in September.
