The ad-supported tier at streaming giant Netflix now has nearly 5million active subscribers per month. Executives at the entertainment firm announced the figure in which they pitched how wide their programming extended to potential new advertisers.
In November last year, the streaming company started selling a $7-per-month subscription option that comes with obligatory advertising. This was marketed as an alternative to the usual $10-per-month fee that allows audiences to watch Netflix content without the hassle of adverts, which Netflix had offered since they first began streaming – although at a lower price.
The new ad-supported scheme was launched to bring more customers to Netflix at a lower price and strengthen its position in a market with more competitors cropping up all the time. As of the end of March 2023, Netflix had accrued 232.5 million subscribers, including the 5 million ad-supported tier users.
Following the pitch meeting to advertisers, Bela Bajaria, chief content officer for Netflix, said, “No other entertainment company aspires to create great movies and shows across so many genres in so many countries and for such a broad, diverse audience.” Netflix is clearly keen to work with advertisers to create a unique method of advertising for a digital platform.