Netflix's Better Ad-Tier Revenue Plan? First Off: Hello, Transparency

Netflix's ad-supported option has doubled its members since the first quarter -- now at 5 million global users, according to the company.

Of that total, 1.5 million are coming from the U.S. -- a fraction of its 75 million overall U.S./Canada paid, ad-free plan subscribers.

MoffettNathanson Research now estimates that …

1 comment about "Netflix's Better Ad-Tier Revenue Plan? First Off: Hello, Transparency".
Check to receive email when comments are posted.
  1. Ed Papazian from Media Dynamics Inc, July 24, 2023 at 5:12 p.m.

    To say that, "Netflix can't do it by itself" when it comes to attaining reach and frequency for advertisers seems like a rather huge understatement---or,  perhaps an overstatement ,depending on how you look at it. 

    Of course, Netflix's ad-supported service, with its tiny U.S audience base, can't be the mainstay of a brand's maximum reach media plan. In fact, it may not even deserve to be in  many  plans at all when the costs of attaining a very, very small incremental reach at a very high CPM are taken into account.

    If Netflix expects its ad-supported service to be a major player in the reach calculations of advertisers it had better do something dramatic to push its U.S. subscriber base up to around 30-40 million. The current figure---1.5 million---per this report, just doesn't cut it.

    About five years ago, I and others were speculating on the likely success of an ad-supported Netflix service---at the time the prospects were very good. But now, it seems as if that ship has simply sailed away. The "ocean", once almost empty, is a very crowded place these days.

Next story loading loading..

Discover Our Publications