Netflix doubles plan subscribers with ads

Last Wednesday (15), the Netflix announced that its cheapest plan (but with ads) already has 40 million active users per month in the world. That’s far more than the 23 million subscribers to the basic ad-supported plan that the service streaming I had spoken in January. In other words, the platform practically doubled the number of subscribers to this plan.

Netflix also announced that it will create its own advertising platform and will no longer work solely with Netflix. Microsoft in this area. The Redmond Giant will continue to help with programmatic ads, but other ad companies will join the game, such as The Trade Desk, Google Display & Video 360 e Magnet.

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Netflix will begin testing its ad platform in Canada later this year and wants to launch in the US by the end of the second quarter of next year. They want to have this working in all markets by the end of 2025.

Streaming Advertising Market

Netflix launched its plan with ads in November 2022 (including in Brazil) to earn more money, as subscriber growth was slower. This also included a strategy and measures against those who share passwords.

Since then, Netflix has been racing to grow its plan subscribers with ads, after admitting it was slow to enter this market. As part of this, Netflix took away its cheapest ad-free plan in the US and UK in July 2023. In Brazil, the Basic plan without ads was removed in October 2023. It cost R$25.90,

The company said that 40% of new subscriptions in countries with an ad plan are from this cheaper option. Now Netflix has 270 million total subscribers. To compare, Disney+ has 117.6 million global subscribers, while Warner Bros. has 117.6 million global subscribers. Discovery, with Max, has 99.6 million. These two companies announced that they will offer streaming packages to avoid cancellations and make your streaming business profitable.

Meanwhile, new competitors are growing but still lagging behind. Comcast’s Peacock has 34 million customers and Paramount Global’s Paramount+ has 71 million.

Netflix is ​​considered the “gold standard” by competitors

The news about Netflix’s ad-supported active users came a month after the company told investors it would no longer provide quarterly updates on subscriber numbers. Netflix said that it is making a lot of money and that the number of members is not the only important thing for the company’s growth.

At the same time, regular TV ratings are falling and traditional media companies are trying to make it in the streaming world. Traditional media companies have suffered in recent months as the advertising market has slumped amid fears of recession and rising interest rates. Companies often spend less on advertising when the economy is uncertain.

But with a long way to go in streaming, Netflix has established itself as the leader while many others struggle to make a profit from their streaming platforms. Disney executives called Netflix the “gold standard” of streaming and said competition in the ad market has increased because of a new competitor, likely Netflix.

Media companies showed quarterly results that indicate the traditional TV advertising market is still weak but improving. On the other hand, digital and streaming advertising is recovering.

Sources: CNBC, Netflix