New data has revealed that Netflix’s advertising-supported service – a cheaper subscription option – has surpassed one million users.
Bloomberg shared that, after a slow start to the service, the number of users grew by 500% during the first month and 50% in its second. The news comes after Netflix failed to attract as many subscribers as they’d promised advertisers initially.
Although the streaming service has not garnered as many users as other advertising-supported subscription platforms, such as Peacock and Hulu, or free services like Tubi, Netflix’s plan is still working well.
Many analysts were worried that introducing a cheaper ad-supported service would lead users to downgrade their plans. Yet, data has revealed that most service users are new customers or those who have previously had accounts – not those already signed up.
With Netflix’s crackdown on password sharing, more users will be forced to sign up for their own accounts, and picking the more financially-conscious option might become a common occurrence.
Moreover, although 231million people pay for Netflix, the price is becoming too high for many users. In the U.S., the company’s fees have practically doubled in the space of a decade. With the introduction of a cheaper option, Netflix could see between 15million and 30million more users added to its current 74 million.
