TIME.CO, Jakarta – Netflix (NFLX.O) said on Wednesday, November 1, 2023, that its ad-supported fare has reached 15 million monthly active users. The milestone comes a year after the streaming giant unveiled a more generous plan to revive subscriber and revenue growth after a slowdown.
Citing Reuters, the company had five million monthly users at the advertising level in May and has increased the price of ad-free options in an effort to push more customers to other tiers, where ads help generate more revenue per user.
Netflix raised subscription prices for some streaming packages in the United States, Britain and France last month, after adding 9 million subscribers in the third quarter beat Wall Street expectations by 6 million.
After resisting advertising for years, Netflix changed its mind in April 2022 after losing subscribers in the first quarter of the year.
A month after Netflix launched its advertising plan last year, rival Disney+ also launched its own advertising version in a bid to push its streaming business towards profitability.
Streaming services like HBO Max, Paramount+ and Peacock also offer ad-supported versions of their services, mimicking the business model that has long fueled the TV business.
Announcement
Amazon’s (AMZN.O) Prime Video will join its streaming rivals next year in rolling out ads and introducing a higher-priced ad-free tier.
Netflix said in its third-quarter results that it is rolling out its advertising plan, which costs $6.99 a month United States of America, continues to grow with a sequential increase in the number of subscribers of almost 70%. In countries where advertising packages are available, 30% of registrations come from the advertising tier.
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