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Message   VRSS    All   Netflixs ad tier has attracted more than 70 million subscribe   November 12, 2024
 10:20 AM  

Feed: Engadget is a web magazine with obsessive daily coverage of everything new in gadgets and consumer electronics
Feed Link: https://www.engadget.com/
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Title: NetflixΓÇÖs ad tier has attracted more than 70 million subscribers

Date: Tue, 12 Nov 2024 16:20:11 +0000
Link: https://www.engadget.com/entertainment/tv-mov...

Netflix is crowing that its ad-supported tier now boasts 70 million users
throughout the globe, as reported by Variety. The company announced 40
million users back in May, so this is some real growth. The streamer has been
slowly ramping up its ad tier, going all the way back to 2022.

Amy Reinhard, president of advertising at Netflix, says that the company
continues ΓÇ£to see steady progress across all countriesΓÇÖ member bases.ΓÇ¥
She also noted that over 50 percent of new Netflix sign-ups are for these ad-
supported plans. The transformation of streaming into regular TV is nearly
complete.

ThereΓÇÖs one major potential caveat. The company released the aforementioned
data regarding new sign-ups, which is impressive, but there isnΓÇÖt any
information regarding pre-existing customers. ItΓÇÖs highly possible a whole
lot of people downgraded from a premium tier to an ad-supported tier.

IΓÇÖm one of them. I donΓÇÖt mind watching an ad or two as I mindlessly stuff
food down my gullet while pseudo-watching an episode of The Diplomat or The
Circle. In other words, thereΓÇÖs an argument to be made that the ad-
supported tier could be eating into the more expensive offerings.

ThereΓÇÖs also an argument to be made that this yearΓÇÖs growth spurt for the
ad-supported tier could attract companies with deeper ad-spending budgets,
thus making up the difference. Netflix is airing live NFL broadcasts on
Christmas Day, and it says it has already sold out all available commercial
inventory. The streamer is actually betting big on live streams, with
wrestling events, cooking shows and talk shows all airing in the near future.
The companyΓÇÖs recent forays into audience measurement and the ad-tech space
should help entice sponsors for these events.

Netflix even has plans for ΓÇ£themedΓÇ¥ advertisements with certain shows.
The next season of Squid Game will include a three-part linked commercial by
Kia. Nothing makes me want to buy a car more than a deadly dystopian
bloodsport that seems closer and closer to the real world by the day.

This article originally appeared on Engadget at
https://www.engadget.com/entertainment/tv-mov...
attracted-more-than-70-million-subscribers-162011582.html?src=rss

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