December 22, 2022

Netflix’s New Ad Tier Looks to Be Off to a Tepid Start

Netflix, after years of insisting it wouldn’t dive into the advertising business, threw its hat into the ring last month with the launch of an ad-supported plan, priced 30% less than its previous least-expensive package.

But at least initially, independent research suggests Netflix’s Basic With Ads plan is getting a relatively cool reception. In November, about 9% of Netflix’s U.S. subscriber sign-ups were for the $6.99/month ad-supported package, making it the least popular among its plan options, according to an analysis released this week by research firm Antenna. By comparison, when HBO Max launched its ad-supported option in June 2021, 15% of the streamer’s U.S. sign-ups that month were for HBO Max With Ads.

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