Netflix’s gamble on an ad-supported tier seems to be paying off. The streaming giant recently announced a surge in users for this plan, reaching a global total of 40 million monthly active users. This marks a massive increase from just 5 million a year earlier, highlighting the success of the cheaper subscription option in attracting new customers. netflix cheaper plan

The introduction of the ad-supported tier came at a time when the streaming industry was witnessing fierce competition. Companies are increasingly looking at bundling their services to retain subscribers. By offering a more affordable plan, Netflix seems to have carved out a niche for itself, attracting a new segment of viewers. Netflix, which launched the ad-supported plan in November 2022, said that 40% of all sign-ups come from those plans in the countries where they are available.

Netflix’s ad-supported plan is available in select countries only. These include the US, the UK, Canada, Australia, France, Germany, Italy, Japan, Korea, Mexico, and Spain.

While 40 million users is a significant number, it remains to be seen how this new tier will impact Netflix’s overall revenue and subscriber base in the long run. Regardless, the initial surge indicates that the ad-supported option is resonating with viewers looking for a cost-effective way to access their favorite shows and movies.

Here’s a breakdown of the key points:

• Surge in Users: Netflix’s ad-supported tier has grown to 40 million monthly active users, up from 5 million in the previous year.
• Success of the Cheaper Plan: This significant growth is seen as a sign that Netflix’s strategy of offering a more affordable option is working well.
• Competition in Streaming: The ad-supported tier’s launch came amid increasing competition in the streaming industry, where companies are looking at bundling strategies to retain users.

Netflix also unveiled plans to launch an in-house advertising technology platform by the end of 2025, aiming to provide clients with new advertising buying options and enhance user engagement. The company announced partnerships with Trade Desk, Google Display & Video 360, and ad-tech firm Magnite, joining Microsoft to accelerate automated ad buying.

Netflix’s ad-tier plan costs $6.99 per month, compared with monthly plans of $9.99 from Warner Bros. Discovery’s, streaming service Max and $7.99 for Walt Disney’s, Disney+.
Last month, Comcast-owned, streaming service Peacock said it would raise the price of its plans, which would take its ad-supported plan to $7.99 per month. netflix cheaper plan

In a further expansion of its content offerings, Netflix revealed plans to stream two National Football League games on Christmas Day this year, signaling its commitment to adding more live programming to its streaming service.