Netflix is massively influenced by its ad-supported plan, seeing 40 million global monthly active users in one year! This indicates a 35-million increase (from the time of launching in late 2022). However, the vast majority of Netflix’s 270 million subscribers largely lean toward the advertising-free plans, and the “Standard with Ads” option is still viewed as a huge game-changer.
Netflix’s Ad Gamble Pays Off: 40 Million Strong on the “Standard with Ads” Plan
The strategic pivot for Netflix
Years ago, Netflix did not accept ads, but the rapidly growing competition and the need to address a wider audience led to the introduction of an advertising model in 2022. As part of this strategic shift, product development in the US offered a cheaper option – the “Standard with Ads” plan costs $6. It offers either a $15/month ad-free basic plan or a plan with ads for $9. 99/month. which consists of a monthly plan ($17) and a yearly plan ($22). 99). High-definition streaming available on two different devices plus access to a huge library of movies (with few limitations) make this plan a reasonable choice to most viewers.
The Early Success and In-Depth Engagement
The “Standard with Ads” plan is not just having new users, but also capturing their interest. Netflix states that in qualifying countries at least 40% of new subscribers sign up for the ad-supported version. However, there is much more to this trend – an incredible 70% of these ad-supported subscribers stream for over 10 hours per month, which could imply a highly satisfied audience with both the content and ad experience. Netflix is also advertising itself by saying that its viewers are twice as likely to respond to advertising than viewers of any other streaming service. They are therefore a very tempting audience for advertisers.
Today Netflix is working with Microsoft on ad delivery, but the company will take this further by creating its own advertisement platform in 2025. It is a sign that the ads-supported model is embedded in the company’s strategy and that they want to have more control over the user experience.
Beyond Ads: Shuttering Password Sharing
Netflix isn’t only relying on ads to get more funds. They are also focusing on the inside passcode sharing outside the family units. This action, on the one hand, received reproaches from many users, but, on the other hand, statistically resulted in an increased number of subscribers and revenue.
The Future of Streaming: A Multi-Faceted Approach
With the rise of the “Standard with Ads” option on Netflix, the increased significance of a subscription model that has multiple tiers in the streaming area is also noted. Since Netflix accommodates all these budgets and preferences, it is simply creating a larger audience while also boosting revenue. It’s a win-win for both the streaming giant and cheap-loving viewers who don’t want to with their beloved shows and movies.
