Netflix has seen a sharp rise in the number of subscribers to its low-cost ad inventory, which the company said has jumped by 8 million over the past two months.
The streaming giant will roll out its $6.99 per month Basic With Ads plan in November 2022 and has more than 23 million monthly active users worldwide, according to Amy Reinhardt, president of advertising at Netflix. .
The total was just over 15 millionn This was right after the company announced its third quarter results in October last year.
The company said ad tier subscriptions account for about 30% of all new signups in the 12 countries where the platform launched, including the United States.
The rapid growth of the advertising tier comes after Netflix's rollout got off to a rocky start, as the streamer allowed advertisers to recoup money for ads that had not yet run because the rollout failed to meet viewership goals. This is in response to reports that.
But Netflix's fortunes appear to be changing following reports that more customers are reconsidering their streaming spending and, in some cases, opting for cheaper ad-supported plans.
Subscribers in the ad tier are quickly becoming a larger portion of Netflix's 247.2 million users worldwide, who pay $15.49 per month for a standard ad-free plan.
With the addition of commercials, the company says 85% of customers on ad-supported plans stream more than two hours a month on the platform.
“What we're really excited about is the engagement,” Reinhardt said at a news conference Wednesday. variety entertainment summit At CES in Las Vegas.
executives told Variety The company said it is looking at ways to grow its business in a “meaningful way” while engaging and keeping customers engaged with its movies and shows.
“We're very fortunate to be able to take a long-term view on this,” Reinhardt said.
“Growing our business is definitely our top priority at this time, but we want to make sure we do it in a way that is meaningful to our members,” she said.
