The new ad-supported plan is proving effective for Netflix, at least in Spain. According to a study conducted by Kantar, four in ten new subscribers have opted for the ad-supported option. The subscription, which debuted in the country at the beginning of November, allows access to the catalog of series and films for a monthly cost of 5.99 euros.
The results of the study Entertainment on Demand understand the behavior of the market during the fourth quarter of 2022. It reveals that the Netflix Basic plan with ads became a popular option among new users. However, its release it was not enough to increase the subscriber ratesince Netflix only took 10% of new subscriptions.
Netflix’s cheap plan with ads was launched as an alternative for those on a tight budget. Although the first data in Spain are positive, its performance has not been significant in the rest of the countries. A report of Antenna showed that only 0.2% of total Netflix subscribers in the United States opted for the ad-supported subscription.
For his part, digiday reported in December that Netflix was refunding money to advertisers because promised viewership goals weren’t met. During its first month, the ad-supported plan served only 80% of ad views.
The idea that Netflix Basic with ads would drive new subscriptions hasn’t panned outAt least in its first months.
The Netflix plan with ads is popular in Spain, despite its limitations
The reasons for this can be several, although the most obvious is that not a competitive option to attract new users. In terms of price, it is barely 2 euros (30 MXN) cheaper than the ad-free option. Although both share the same playback quality and number of active devices, the Netflix Basic with ads It does not allow downloading series or movies.
This feature is very important for users who are constantly traveling or who live in regions where the internet is not stable. The possibility of downloading one or more episodes of your favorite series to watch them later is impossible in the plan with ads. Added to that, the content catalog is between 5 and 10% smaller compared to the rest of the plans.
Despite the above, Netflix’s cheap ad-supported plan seems to be popular among new subscribers in Spain. If the numbers turn out this year, the company could reverse the spiral of economic losses experienced in previous quarters. An ad-based subscription would also be an alternative for those who can no longer share their account.
Kantar’s study also yields interesting data on Disney+, which became the most important service during the last quarter of 2022 by capturing 20% of subscribers in streaming video services. The platform surpassed HBO Max in its race for third place in Spainalthough the analysis was carried out before the premiere of The Last of Us.
He The big winner in the streaming war was Amazon Prime Video, who took over 61.5% of the new subscriptions. That was possible thanks to series like The Lord of the Rings: The Rings of Power and The Boysas well as the perception that it has an increasingly better value for money. According to Kantar, one in 10 new Prime Video subscribers came from a competing service.