Netflix executives jump for joy: much-criticized decision has yielded great results no one expected

After losing a million users last year, Netflix came back with a bang this spring. The company’s subscriber base reached a record 232.5 million in the first quarter of this year, defying pessimistic forecasts for the success of the ad-packed plan.

Netflix’s ad-supported subscription now has five million monthly active users, according to The Hollywood Reporter. The streaming company revealed that the average age of users with an ad-supported subscription is 34, and that the number of customers has doubled since the beginning of this year.

According to one of the company’s general directors, Greg Peters, more than 25 percent registrants in countries where the ad-supported subscription is available choose the ad-supported subscription.

He also confirmed that despite the commercial breaks, engagement levels for this subscription option were about the same as the others. His comment:

“Signals are promising: opting in to our ad plan is comparable to our comparable ad-free plans.” This is very important because it all starts and ends with the users. That’s why, despite all the competition, Netflix is ​​the most popular streaming service today. In order to be seen, everyone needs to be watching. That’s what sets Netflix apart – we’re visible.”

The company announced the ad-supported subscription data on Wednesday afternoon. Shares rose as high as $341.25 after the market closed, but have since fallen back to $340.20. It will be interesting to see tomorrow’s data after the markets open to see if there is more price reaction to these developments.

2023-05-30 04:06:00

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