Netflix says its cheaper plan with ads has 5 million users

Los Angeles – Netflix said its new ad-supported subscription plan has five million monthly active users, six months after its launch.

The streaming video pioneer in November 2022 launched an option with commercials for US$7 (S$9.40) per month in 12 markets, including the United States, as an alternative to ad-free plans that start at US$10 a month. It was designed to attract more customers and add a new revenue stream as competition for online viewers intensified.

Netflix reported 232.5 million paying subscribers around the world as at the end of March.

On Wednesday, Netflix made its first presentation to advertisers at an annual ritual known as the upfronts, where networks aim to lock in ad commitments for upcoming shows. Walt Disney, Comcast and other companies are also vying for digital ad dollars.

Netflix executives highlighted the company’s wide range of programming, from sci-fi hit Stranger Things to South Korean drama Squid Game and upcoming action movie sequel Extraction 2.

“No other entertainment company aspires to create great movies and shows across so many genres in so many countries, and for such a broad, diverse audience,” said Netflix chief content officer Bela Bajaria.

Executives said they wanted to work with advertisers to create new types of advertising that could only be done on a digital service. For instance, a 30-minute commercial could play out over several days, with a story unfolding each time a viewer watches a show on Netflix, co-chief executive Ted Sarandos said.

“You cannot do that in linear TV because people don’t live on one channel,” Mr Sarandos said.

Netflix had planned to make the ad presentation live in New York, but switched to a virtual event after screenwriters went on strike and threatened to picket the venue. REUTERS, BLOOMBERG