Six months after the launch of its formula with advertising, Netflix announces the first results. The offer has already attracted 5 million active users. And, in the 12 countries where it is available, one in four new subscribers chooses this offer. This still represents only a drop of water compared to the 233 million subscribers to the platform. But this audience is very captive.
In early November 2022, Netflix launched its new “low cost” subscription with advertising. For 6 euros per month, a much lower price than the classic offer, users could access all of the platform’s content. There are obviously some constraints vis-à-vis this formula, starting with the presence of advertisements which contribute to its economic balance. For every hour watched, you must watch between 4 and 5 minutes of advertising. However, there are two exceptions: Netflix original content and children’s programs do not contain advertising.
Also Read – Netflix Plans To Launch Free Subscription With Ads
Besides the presence of these ads, the low cost subscription has other limitations. It is not not possible to watch offline films and series (and therefore to download them to a smartphone or tablet for a plane trip, for example). You also cannot watch the programs in Full HD. Only 720p HD definition is available. A limitation that should be removed. Finally, the catalog of films and series available to these subscribers is less complete. Still, there are a lot of limitations. But if you subscribe to Netflix only for exclusive series and movies, it is not inconsistent.
Netflix’s offer with advertising convinced 5 million users
At least that’s what the few million subscribers who have subscribed to this offer seem to think. Jeremi Gorman, director of advertising at Netflix, has indeed announced that the offer with advertising counts 5 million active users six months after its launch. An announcement made during an online conference organized on the sidelines of the traditional Upfront week where television channels present their programs to advertisers. A somewhat special week this year because of the scriptwriters’ strike which is affecting the production of many series.
As early as January, Netflix said it was already very satisfied with the first results of this offer. But the firm can now make a more precise assessment. The average age of subscribers with advertising is 34 years old. This will certainly help advertisers to choose their target more effectively. Especially since Netflix claims that its viewers are four times more likely to react to an ad than users of other streaming platforms. If the figure of 5 million seems like a drop in the bucket compared to the 233 million subscribers of the platform worldwide (a little over 2%), Netflix confirms that the offer with advertising now concerns 25% of new subscribers in the 12 countries where it is available. Remember that Netflix’s unofficial goal is to reach 40 million subscribers by the end of 2023.
Source: Les Echos