Netflix's ad-supported tier now has 5 million active global users per month, only six months after the subscription tier launched. This was revealed during the upfront presentation of the company to its advertisers.
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In this illustration photo taken on July 19, 2022 the Netflix logo is seen on a TV remote in Los Angeles. Netflix reported losing subscribers for the second quarter in a row Tuesday as the streaming giant battles fierce competition and viewer belt tightening, but the company assured investors of better days ahead.
5 Million Active Users for Ad-Supported Plan
As the company made its first major presentation to Madison Avenue for its advertisers, Netflix announced that it had reached nearly 5 million active users per month for its ad-supported tier. According to TechCrunch's report, this is the first time the company has disclosed figures for the ad-supported plan since its launch six months ago.
Netflix remained its standing among other companies despite having the smallest pool of customers paying for an ad-supported version of its offerings. The company competes for major advertisers' dollars with its competitors that have been in the ad industry for years now. Co-Chief Executive Ted Sarandos stated, "We have a long way to go to build scale in advertising."
The company launched a $7-per-month option that comes with commercials last November in 12 markets, aiming for an alternative option to ad-free plans that start at $10 per month. Through this strategy, Netflix will attract more customers and may potentially add a new revenue stream as competition for online streaming intensifies.
President of Worldwide Advertising Jeremi Gorman stated that monthly active users count all adult profiles used on one account with ads and children's profiles do not run commercials. However, multiple users can share the same Netflix account, and the projected numbers are not an exact number, which could be changed with the upcoming password-sharing crackdown.
Presentation for Advertisers
However, the company decided to conduct its presentation virtually as the venue was supposed to happen at the Paris Theater near Central Park. Most likely, this will be disrupted by protesters participating in the Hollywood writers' strike.
Wall Street Journal reported that NBCUniversal experienced a strike by the members of the Writers Guild of America during its morning presentation last Monday, outside New York's Radio City Music Hall.
Also Read: Netflix to Launch Ad-Supported Tier in November That Costs $6.99 Per Month
Executives of the company have been preparing for its first-ever presentation to advertisers, aiming to lock in ad commitments for upcoming shows. Reuters reported that executives stressed the company's wide range of programming, from Stranger Things, Squid Game, and the upcoming sequel of Extraction.
Chief Content Officer Bela Bajaria stated, "No other entertainment company aspires to create great movies and shows across so many genres in so many countries and for such a broad, diverse audience. Netflix has a total of 232.5 million global subscribers around the world as of the end of March.
Related Article: Cheapest Netflix Plan Now Available on Apple TV! But, Is This Ad-Supported Tier Worth It?
