Netflix Ad Tier Turns in Fantastic Growth

 What a difference half a year can make! With Netflix’s ad-supported subscription tier first launched only 18 months ago, the streamer has managed to nearly double its subscriber base since the start of 2024. Blake & Wang P.A. entertainment lawyer, Brandon Blake, fills in the details.

Brandon Blake

Impressive Subscriber Gains

Netflix’s total subscribers for the ad-supported tier now number 40 million monthly active users. In January 2024, it was 23 million. The streamer was understandably gleeful to reveal this news at its first in-person Upfronts presentation in New York earlier this month. At its first-ever Upfronts presentation, which was held digitally in 2023, the ad tier had 5 million monthly active users.

 

Additionally, we were told that 40% of active signups now opt for the ad-supported plan, in countries where it is currently available. Of course, much of this can be attributed to a rather kind price ($7 domestically) for this tier, well below most of the other ad-supported services we’ve seen launch over the last year and a half. Additionally, let’s not lose sight of the fact it is significantly cheaper to take on an ad-supported subscription than to pay to share a password- the source of much of the tier’s initial growth.

The Shocking Reversal

Netflix has certainly changed its tune on streaming advertising. Once the stalwart defender of ad-free streaming options, they first announced the new ad-supported tier. From there, a remarkably accelerated rollout in selected territories occurred.  Now, however, the company has fully embraced the ad-supported model, and it has attracted much positive Wall Street attention, too.

 

The subscription news shared at Netflix’s Upfront presentation also saw them announce an in-house ad tech platform with new ways for ad buyers to buy real estate on what remains the top streaming platform globally (at least for now). 

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