Netflix announced on Wednesday that its budget-friendly ad-supported subscription tier has now garnered a staggering 15 million monthly active users worldwide. This number marks a threefold increase compared to the figures released in May. As a result, Netflix’s stock saw a 2% surge in value upon this exciting revelation.
The streaming giant unveiled its ad-supported plan alongside a crackdown on password sharing, all part of a concerted effort to boost its revenue stream amid a slowdown in subscriber growth. These strategic moves seem to have paid off handsomely. In its third-quarter report, Netflix reported adding 8.8 million subscribers, surpassing Wall Street’s expectations. Moreover, it anticipates a similar surge in subscriber growth for the fourth quarter.
Netflix is actively working on enhancing its ad tier with new features to benefit both advertisers and users. Newly appointed President of Advertising, Amy Reinhard, shared in a recent blog post that advertisers will now have the flexibility to run ads of varying lengths, including 10, 20, and 60-second spots, in addition to the 15 and 30-second options. This extended range of ad formats will provide advertisers around the world with more choices to leverage their marketing strategies effectively.
Subscribers in the ad-supported tier can also look forward to a range of exciting features. Netflix has announced that it will introduce higher streaming resolution, offering 1080p for ad tier users in addition to the existing 720p quality. Additionally, users will soon have the ability to download movies and series to their devices, starting at the end of this week.
To cater to binge-watchers, Netflix has outlined plans to introduce an ad-free episode after users watch three consecutive episodes of a series, beginning in the first quarter of 2024. This feature is set to enhance the viewing experience for subscribers in the ad-supported tier.
In summary, Netflix’s more affordable ad-supported subscription option is proving to be a resounding success, attracting millions of subscribers and driving the company’s revenue growth. The platform is actively working on enhancing the offerings for both advertisers and users, making it an exciting option for a wide range of viewers.