One of the novelties for the end of this 2022 in streaming was the ad-supported plan adoptionwhich would lower the costs of users, in exchange for commercials from time to time.
And a recent report from the analytics firm Antenna, it is revealed that Netflix is having a poor subscription to this option.
According to the study: “Only nine percent of new Netflix subscribers in the United States opted for the streaming service’s new ad-supported streaming tier last month. That compares with 15 percent of new subscriptions reportedly opting for competitor HBO Max’s ad-supported subscription during its launch month in 2021. Netflix’s “Basic with Ads” plan launched on the 3rd. November at $6.99 a month, compared to between $9.99 and $19.99 a month for an ad-free subscription.”
The figures are not surprising after digiday inform that Netflix has returned money to advertisers after failing to meet viewership guarantees by up to 20 percent.
“It’s still very early days for our ad-supported tier and we’re pleased with its launch and engagement, as well as advertiser enthusiasm for partnering with Netflix,” a Netflix spokesperson said. in a statement to The Wall Street journal. Netflix disputed the accuracy of Antenna’s figures, which are based on third-party consumer data.
Netflix’s president of worldwide advertising, Jeremi Gorman, a digiday commented that, “I think the biggest hurdles will actually be the temptation to rush into that perfect experience without laying the groundwork first. I think it’s really important that we remain committed to getting things right, like measurement, delivery, all those basics.”