https://www.digitaltveurope.com/2023/05/18/netflix-reveals-take-up-of-ad-tier-at-new-york-upfront/
Netflix has pulled back the curtain on its advertising-supported subscription plan during its Upfront in New York, revealing that almost five million customers have taken up the option since its launch six months ago.
In a presentation to advertisers, Netflix said that it is “making steady progress” on its ads push, with 80% of viewing from those on ad-supported plans watching on a TV screen.
The streamer, which has 232.5 million global subscribers, added that a quarter of its new customers were taking the ad-supported plan where available, while the median age of viewers was 34. Netflix added that 70% ad-supported members are aged between 18 and 49.
The news emerged in an earnings call with analysts following Netflix’s Q1 results, during which the streamer revealed it had added 1.75 million net new subscribers in Q1.
It failed to meet Wall Street predictions, which had estimated around 2.3 million new net subs.
North America subs rose by 100,000, while Europe saw growth of 640,000 and a further 1.5 million were added in MENA and APAC combined. Lat Am subs were down 450,000.
That was against a total of 7.66 million subscribers in the last quarter of 2022, when Netflix launched its ad-supported tier. It means the global streamer now has 232.5 million subscribers around the world.
Sarandos pointed to shows including Ginny & Georgia S2 and the third season of Outer Banks as key shows, while the streamer also confirmed it would focusing attempts to stop password sharing in the US in the next quarter.
Netflix had previously said spending on content would “stay roughly” at $17bn between 2022 and 2024, although Sarandos added that the rate of spending “depends on the rate of revenue growth”.