News culture Netflix ads pay off!
Published on 01/23/2023 at 19:11
To share :
If you subscribe to the Netflix video on demand service, you have probably heard of the new formula at 6 euros per month. This, funded by advertising, was intended to increase the number of new subscribers, but the first figures reported by the Wall Street Journal reported a start more than sluggish. Only 9% of new customers had subscribed to this formula and one could believe that this option would quickly disappear. But according to Netflix officials, it is indeed a success that is looming on the horizon!
According to Netflix, the advent of this low-cost formula is materializing in solid results and could earn more than three billion dollars a year in the coming years. The leaders of the American giant dedicate the success of the new economic model and believe that it allows potential subscribers to turn to Netflix instead of eyeing the competition. According to the comments reported by Deadline, Greg Peters, co-CEO of Netflix, the firm expected this period of acceptance:
The most difficult thing is to take the first step by crawling. Although the offer is recent, we have already learned a lot. The engagement of spectators is comparable to that of subscribers who have subscribed to formulas without subscription. Due to the increase in the number of subscribers to the service thanks to this lower price, the penetration and growth rate of the $7 per month plan is solid. We are just getting started.
By launching this offer last November, Netflix stunned an entire sector because company officials had claimed, a few months earlier, that this direction was not the one chosen by the streaming giant. One of the next targets of the firm is also, beyond potential new offers, to act against the sharing of passwords.
More than 7 million additional subscribers!
Faced with the success of Hulu on American soil, Netflix is reacting to changes in the VOD market. Spence Neumann, CFO of the platform, confirms the lead taken by the competitor, but believes that Netflix is able to catch up in the next few years. He declares :
We expect to be as big, if not bigger, over time certainly in the US market alone, and more from there. It is a course of several years. We’re not going to be bigger than Hulu in the first year, but hopefully over the next few years we can be at least as big. We wouldn’t get into this activity… if it couldn’t represent a significant part of our turnover.
Clearly, Netflix has every intention of continuing this offer with advertising and it even whispers, in certain well-informed corridors, that the company is considering a free offer – with always more ads.
Are you one of those subscribers to the offer with advertising. If so, do not hesitate to indicate, in the comments, if it suits you. Or if not, what puts you off with this offer.
