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Netflix’s Ad-Supported Strategy Takes the World by Storm, Garnering Massive Popularity

They just need to not cancel every series and movie they produce.

Netflix’s Ad-Supported Strategy Takes the World by Storm, Garnering Massive Popularity
Pedro Domínguez

Pedro Domínguez

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Netflix’s ad-supported subscription plan is going full steam ahead. This week, the streaming platform announced that this plan, which was launched six months ago, now has almost 5 million monthly users worldwide.

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As Netflix revealed in its Upfront 2023 presentation, the number of subscribers to this cheaper plan (5.49 euros in Spain), which includes advertising in series and movies, has “more than doubled” since the beginning of the year. In addition, the company confirms that the average age of users subscribed to the advertising plan is 34 years old.

According to The Hollywood Reporter, Netflix’s co-CEO, Greg Peters, said during the company’s presentation that in those countries where this plan with advertising is available, 25% of users end up opting for it. In addition, the level of engagement of users of the plan with advertising would be similar to that of users of plans without advertising, a very positive figure for the company, according to the executive.

“This is critical, because it all starts and ends with consumers,” Peters said. “It’s the reason why, despite all the competition out there, Netflix is the most popular streaming service today.”

The successful figures of Netflix’s worldwide advertising plan contrast sharply with the huge drop in users in Spain following the ban on account sharing. The company began at the beginning of the year to prohibit this custom already established among the platform’s users and which Netflix itself even encouraged at the time.

However, Netflix has already lost more than one million users in Spain during the first fiscal quarter of 2023, according to Bloomberg data. A drop of enormous proportions, if we take into account that the platform had 9.6 million subscribers in Spain in 2022.

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However, Netflix is not backing down on its decision, and many users who had not yet received the famous warning that accounts cannot be shared and that they must select the default location are already receiving it when connecting to the platform. Will they change their strategy in Spain or will they not care about the large drop in users, as well as the bad image they have carved for themselves?

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Pedro Domínguez

Pedro Domínguez

Publicist and audiovisual producer in love with social networks. I spend more time thinking about which videogames I will play than playing them.

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