Streaming giant Netflix recently introduced an ad-supported subscription tier, but the level of awareness of this offering seems to be falling short of expectations. As of November, only 59 percent of users are aware of the option, according to a study by Evercore, down slightly from September, when the percentage was 62 percent. This offering, while not yet generating the massive success Netflix executives anticipated, still brings in more revenue per member compared to more expensive ad-free subscriptions.
Netflix has had one of the most profitable aspects of late in stepping up its fight against password sharing, a process known internally as "paid sharing." This strategy has caught the attention of the entire industry, with platforms like Disney+ planning to implement their own versions in the next year.
Netflix: Discovery that Surprises. What Many Subscribers Still DON'T Know!
Netflix reported for Q3 2024 an impressive 247 million subscribers globally. Although the company did not provide specific data on the number of subscribers to the ad package, it noted that registrations for this tier increased by 70% quarter-on-quarter. In countries where it is available, the ad option attracts 30% of new subscribers.
Netflix, with this ad-supported model makes a real strategic move in an ever-evolving media landscape, offering users a more affordable alternative from a financial point of view. At the same time, the strategy of limiting password sharing is another way Netflix aims to maximize revenue and retain a strong subscriber base.
While the level of awareness of Netflix's ad-supported offering is still below expectations, the growth in subscribers and the innovative strategies adopted by the company show a clear commitment to adapt and evolve in the face of changes in the media industry. With these steps, Netflix strengthens its position as a leader in the field of streaming services, staying in step with the needs and expectations of its consumers.
