2023-10-24 10:01:00
According to the AdExchanger, Netflix has been cautious with returning users to the platform, serving fewer ads to them compared to new subscribers. In this case, the number of ads gradually increases as they watch more content.
In this way, Netflix’s idea is to get its subscribers used to watching advertisements so that they become loyal to the basic plan, which generates revenue through monthly fees and advertisements.
Data released by Netflix in an earnings call with its shareholders says that there was a notable increase in subscribers in the third quarter of 2023 thanks to the basic ad-supported plan. This new format saw the company’s revenue grow 9% with 43.1% of current subscribers wanting to switch to the cheaper plan with advertisements.
Furthermore, the basic plan with ads contributed to stopping the drop in subscribers following the restriction on account sharing. Netflix lost “only” 970 thousand customers in the second quarter of 2023, less than half of the 2 million predicted by its analysts.
This allows us to conclude that Netflix is becoming much more than just an application for watching series and films, but also an center like open TV has been doing for a long time, profiting from advertisements among its attractions, although Netflix still have a Premium plan without interruptions during programming.
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