Netflix, a popular digital streaming platform, recently launched an ad-supported subscription package in November in various markets, including the US. However, according to a report from The Wall Street Journal, demand for the package has been low and has disappointed the platform. Some analysts have even speculated that the package may be removed due to the loss of revenue. An official statement has recently been made regarding the issue.
Ad-supported subscription package meet expectations?
Jeremi Gorman, a Netflix executive in charge of advertising, recently made statements at the CES 2023 fair, which took place between January 5 and 8. Gorman spoke about the performance of Netflix’s ad-supported subscription package, which was launched in November in 12 countries and is set to be available in more country soon.
Despite earlier reports indicating that the package had not met expectations, Gorman stated that Netflix was satisfied with the package, despite facing some challenges. According to data from Antenna, the package only reached 9% of the US audience in the first four weeks after its launch in November.
During November, Netflix’s ad-supported subscription package was the least popular service, only attracting 0.1% of the platform’s existing users. The package, which currently displays ads to subscribers for 15 and 30 seconds, also plans to offer specific sponsorships for productions in the future in order to minimize the revenue loss experienced by the platform.
The ad-supported subscription package is priced at $6.99, while the basic subscription plan, which offers unlimited films and TV shows in HD resolution in the US, is priced at $9.99.
Netflix Plans
| $6.99/month | $9.99/month | $15.49/month | $19.99/month |
|---|---|---|---|
| Basic with ads | Basic | Standard | Premium |
| ✓ Watch on 1 supported device at a time | ✓ Watch on 1 supported device at a time | ✓ Watch on 2 supported devices at a time | ✓ Watch on 4 supported devices at a time |
| Some movies and TV shows unavailable (learn more), unlimited mobile games | ✓ Unlimited movies, TV shows, and mobile games | ✓ Unlimited movies, TV shows, and mobile games | ✓ Unlimited movies, TV shows, and mobile games |
| ✓ Watch in HD | ✓ Watch in HD | ✓ Watch in Full HD | ✓ Watch in Ultra HD |
| ✓ Ad-free TV shows and movies | ✓ Ad-free TV shows and movies | ✓ Ad-free TV shows and movies | |
| ✓ Download on 1 supported device at a time | ✓ Download on 2 supported devices at a time | ✓ Download on 4 supported devices at a time |
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