The actions of Netflix They earn more than 7% on Wall Street this Thursday, May 18, after having surpassed the barrier of 5 million active users in a new version of the ad-supported platform.
The company introduced last November the option to choose a subscription priced at $7 per month with ads, as an alternative to ad-free plans that start at $10 per month. Right now, that service is only available in 7 countries but with this news, it is likely to be extended.
The implementation of the service provider’s ad-based program is primarily aimed at attracting more new customers and introducing a new revenue stream in the face of intensifying competition from HBO, Apple or Amazon.
In its annual advertising presentation, Netflix highlighted its variety of content, from the popular sci-fi series “Stranger Things” to the Korean drama “Squid Game” and the upcoming action sequel “Extraction 2,” emphasizing its global reach and diverse public.
The company stated that as of the end of March, it had a total of 232.5 million paying subscribers worldwide, the report said.
What happens to your competitors
Rivals Netflix, Disney and HBO also offer advertising to their users.
Disney+ launched its ad-supported tier, “Disney+Basic,” at $8 a month. According to subscription measurement firm Antenna, in its third month, 36% of new Disney+ subscriptions were for the Basic plan or the Disney Bundle a Trio Basic package, which includes Disney+, Hulu and ESPN+. Compared, Netflix and HBO Max had 19% and 21% of their new sign-ups, respectively, opting for ad-supported tiers within the same time frame.
HBO Max launched its ad-supported tier in June 2021 at $10 a month. A separate report from Antenna claimed that as of the end of Q2 2022, HBO Max boasted a subscriber base of 15.1 million. Among these subscribers, 1.9 million, or 12%, opted for the ad-supported tier.
During the second quarter of 2023, The Walt Disney Company announced growth in Hulu’s paid subscriber base, reaching 48.2 million subscribers, compared to 45.6 million in the same period of the prior fiscal year. According to a Techjury report, more than 60% of Hulu users watch content with ads.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
