Jakarta, CNBC Indonesia – Netflix users who choose to watch ads rather than pay expensive subscription fees continue to grow. Netflix reports that those who watch ads reach 15 million active users per month.
This report was released after a year when the streaming giant launched cheaper payment options to boost subscriber and revenue growth again.
Netflix said in its third-quarter results that adoption of its advertising plan, which costs US$ 6.99 (Rp. 110 thousand) per month in the United States, continued to grow with membership increasing nearly 70% sequentially. In countries that provide advertising packages, 30 percent of registrations come from the advertising level.
Quote Reuterslast May there were 5 million Netflix users who subscribed cheaper with advertising.
The company also raised the price of the ad-free option in an effort to push more customers to other tiers. Netflix raised subscription prices for some streaming packages in the United States, United Kingdom and France last month. The price increase was made after the addition of subscribers in the third quarter of 9 million beat Wall Street expectations of 6 million.
Netflix for years since its founding has insisted on refusing to use advertising. But the company changed its mind in April 2022 after losing customers in the first quarter of the year
A month after the launch of Netflix’s advertising plan last year, rival Disney+ also launched its version of advertising in a bid to push its streaming business to profitability.
Streaming services like HBO Max, Paramount+, and Peacock also offer ad-supported versions of their services, mimicking the business model that has long powered the television business.
Amazon’s Prime Video next year will join its streaming rivals in rolling out ads and introducing a higher-priced ad-free tier.
[Gambas:Video CNBC]
Next Article
Google Could Break Up, Europe Forces Digital Advertising Business to Be Sold
(dem)
Originally posted 2023-11-03 08:05:00.