Last year, Netflix tested an ad-supported plan and lost some users, giving up its throne to the Amazon Prime platform. Eager to climb back to the top spot, Netflix has started improving its cheapest plan.
Netflix is taking action for an ad-supported membership plan Netflix announced that it would improve its ad-supported plan in terms of streaming quality and simultaneous streams. The company revealed that subscribers of this plan would be able to watch content in 1080p resolution with support for two simultaneous streams. It’s worth noting that the ad-supported membership plan currently offers a 720p service.
After the introduction of the new ad-supported membership plan, the most significant drop was in the standard plan, which decreased from 31% to 24%. With the change, premium plan subscribers make up 25% and the basic plan 41%.
The company has set the price of the ad-supported membership at $6.99, while offering the basic plan at $9.99. It’s worth mentioning that users who purchase the basic membership plan in the US have unlimited access to movies and TV shows in HD resolution. The basic plan in our country offers users a 480p resolution.
The company announced that the change would first be offered to users in Canada and Spain. People using ad-supported plans in other 10 markets, including the US, will have access to these features by the end of the month.
In a letter to investors, the company stated, “We believe that these improvements will make our offering even more attractive to a broader consumer audience and further strengthen the participation of current and new subscribers in the ad plan.”
According to Insider Intelligence, Netflix will generate $770 million in advertising revenue this year. The company’s ad revenue is expected to reach $1.9 billion by 2024.
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