Cheap plan with ads Netflix debuted in November in some territories, but its release was far from shocking. According to Antenna, chosen by only 9% of users who signed up for the service in November in the US..
Of the total number of subscribers who opted for an ad-supported plan during its first month of availability, 57% were newly created accounts and users who reverted to the service after canceling earlier. While the remaining 43% were profiles that were switched from more expensive plans, this indicates that Wall Street Magazine.
The stats also show that by the end of November, only 0.2% of all US Netflix subscribers had opted for the cheap, ad-supported tier. Of course, since these are the first few weeks available, it is likely that many stakeholders They haven’t encouraged the change of plan yet. However, it cannot be denied that it has had a slow release and that it certainly has a long way to go before seeing more convincing results.
“This is just the early days for our ad-supported plan, and we’re pleased with its launch and reach, as well as advertiser enthusiasm for partnering with Netflix,” a Netflix spokesperson said. wsj.
Cheap Netflix plan not working
Aside from Netflix’s logical optimism about the performance of its cheap plan and ads, the problems weren’t long in coming. Last week it became known that the streaming platform returned some of the money invested by advertisers in promoting their brands and products. Why? Because the promised audience goals weren’t met.
Also be aware that in some territories this is not an economically competitive product to attract users. In Europe, for example, the cheap Netflix plan costs €5.99 per month; only 2 euros below the cheapest level without ads. In addition, the impossibility of downloading series and movies for offline viewing robs a large number of subscribers of a great deal of freedom of action. Especially those who travel regularly or regularly face long periods of time without communication.
Another important element to consider is that slow adoption among new users is against Netflix’s economic plan. The company has prepared very aggressive trading strategy which initially did not please advertisers and marketing companies. After all, advertising on the cheap rate was significantly more expensive than competing platforms; and the fact that you already have to go out and return the money for not meeting the goals of the audience does not leave a very positive impression.
Return in 2023
Netflix said it expects to hit 4.4 million unique viewers in the last two months of 2022 with its cheap plan. By the end of 2023, their number is expected to reach 40 million. Of course, “unique viewers” — everyone who lives in the same house and uses the service— it’s not the same as “subscribers”. It will be necessary to see if he manages to meet or exceed these goals, at least.
Direct comparison with competitors does not help either. The fact that only 9% of users who joined Netflix opted for the cheap plan within the first month available is well below what was achieved at the time HBO Max, For example. According to Antenna, in June 2021, when said platform launched subscription with ads, 15% of new users chose it.
Source: Hiper Textual
