A few years ago, this was thought to be impossible. However, today Netflix offers a special subscription that includes ads and, in turn, costs less. Since this subscription is still new, there is no official data on the performance of this offer (ad revenue, total number of subscribers, etc.). However, in a recent article, Bloomberg mentioned internal data that it had access to, which gives an idea of the popularity of the low-cost ad-supported Netflix subscription.
According to the data published by the US agency, the subscription is taking off. According to the agency, two months after its launch in the US, the ad-supported version of Netflix has surpassed 1 million monthly active users in that country. According to Bloomberg sources, the growth was 500% in the first month and 50% in the second month.
Another interesting fact is that most users of ad-supported Netflix viewing in the US are new users. This indicates that the low-cost subscription hasn’t turned many users away from the expensive ad-free offerings. Therefore, a low-cost subscription should drive the growth of the total number of subscribers. Finally, according to Bloomberg, Netflix has been able to fulfill its obligations to advertisers, contrary to what was reported in the press.
Of course, for the time being, this information should be considered with caution, as it is not official data that comes directly from Netflix. But it looks like SVOD is about to succeed in its commitment to advertising. This low cost offer can also be enhanced by the password sharing end.