Netflix Ad-Supported Tier Quells Fears After Bumpy Launch as It Quietly Reaches 1 Million Users (Report)
thewrap.comBloomberg reported.The user base grew by more than 500% in the first month since its launch in November, the report said, citing internal data.
Its second month saw another 50% growth.The numbers pale in comparison to Netflix’s 231 million paying users — 74 million in the U.S. — but the uptick quells concerns from shortly after the launch that the new tier wasn’t drawing viewers.Ad-supported rivals like Hulu and Peacock still draw more users, the report noted, as do FAST services like Tubi and Pluto.
But the numbers show that Netflix is drawing the audience it hoped for, the report said, noting that Netflix hasn’t promoted the ad business.But Netflix is giving a choice to consumers on tight budgets — the basic tier with ads is just $6.99 per month — following a series of price hikes in the U.S.
that have sent the standard tier rise to $15.49 per month and premium leap to $19.99.Netflix gambled that existing customers would not downgrade their subscriptions and so far appears to be winning that bet.
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