Netflix Ad-Supported Triumph: Over 23 Million Monthly Users Globally
In the dynamic realm of streaming services, Netflix’s ad-supported tier has achieved global success since its November 2022 launch across 12 markets, including the United States. According to a recent report by Variety magazine, the tier now boasts over 23 million active users per month, underscoring its effectiveness in attracting a broader audience and diversifying revenue streams amid escalating competition in the online streaming landscape.
Within a year of its inception, the ad-supported plan has experienced significant growth, reaching a milestone of 15 million monthly active users. In response to this surge in popularity, Netflix has strategically implemented price increases on its ad-free options, subtly guiding subscribers toward the tier featuring commercials and thereby fortifying overall revenue.
During a presentation at the Variety Entertainment Summit within CES 2024 at Las Vegas’ Aria Resort and Casino, Amy Reinhard, advertising chief, shared a compelling statistic. She revealed that a remarkable 85% of customers on ad-supported plans engage with the platform for more than two hours daily, highlighting the tier’s popularity among dedicated streamers.
A recent report from Insider Intelligence offers a forward-looking perspective, suggesting that Netflix is well-positioned to outpace Disney+ in the competition for U.S. advertising dollars next year. This anticipated shift is attributed to strategic price adjustments and a crackdown on password sharing, compelling more viewers to choose Netflix’s ad-supported plan.
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