Netflix With Ads Is Doing Shockingly Well

The growth for the Netflix tier with ads is pretty strong, too, considering Netflix previously reported that the ad tier had 15 million global active users just two months ago.

Netflix also told shareholders that the ad subscriptions counted for around 30% of new user signups to the platform in 12 countries.

Netflix teamed up with Microsoft for the tech for their ad tier, and Reinhard also said that the partnership is going well.

Netflix Basic with Ads first launched in the US and 11 other countries back in 2022, much to the chagrin of streaming users everywhere.

Netflix had previously avoided adding ads to its platform since it began streaming in 2007, which set it apart from streaming competitors like Hulu.

However, Netflix did set a more attractive price point to make up for the ad tier, offering it for $6.99 per month, which is half the price of the streamer’s $15.49 per month standard plan.

Netflix Basic with Ads’ $6.99 price does put it amongst the lowest costs for ad-supported streaming services, with only Paramount+ and Peacock’s ad tiers being cheaper.

Apple TV+ costs the same. However, it doesn’t come with ads, giving it a slight advantage in the price tier. With that being said, Netflix continues to stand out with pure volume of content, having many licensed properties alongside Netflix original TV shows and movies.

As far as streaming libraries go, Netflix actually doesn’t come out on top in either the movie or the TV show category.

Netflix comes in second place in the TV show category to Hulu, while Amazon Prime holds first place for the movie catalog.

However, having second place in both categories does help give Netflix an edge overall, especially when looking at the lower price of the Netflix Basic with Ads category.

While the Netflix with Ads tier is certainly annoying, it seems like the cheaper price is working and giving more people the option to add a Netflix subscription to their streaming options.

However, Netflix has been in hot water with consumers lately for more than just its ad tier, as it also started cracking down on sharing passwords last year. Many people would use a friend or family member’s Netflix account, but Netflix made the shift to only allow one household to use a Netflix account.

In any case, Netflix continues to dominate in the streaming space, and it seems like its Netflix Basic with Ads tier is working for the time being.

Netflix has been a bit of a roller coaster in the past, with shows like Stranger Things helping to drive up subscribers when a new season comes out greatly. It remains to be seen if Netflix can continue this upward momentum. 

Source: Variety