In November 2022, Netflix released a cheaper plan, but with commercials. His goal with this decision was to offer a cheaper way to enter his service in order to attract new customers and generate more income. Unfortunately for the company, his plan hasn’t gone as planned.
It turns out that in data from Antenna, a major analytics firm, Netflix’s ad-supported plan hasn’t accounted for a significant percentage of its new subscribers. Only 9% of new Netflix users have chosen this plan when creating their account.
For its part, Netflix says that only 0.2% of accounts in the United States use the plan with ads. Thus, it is a very small percentage for a plan that was intended to make a difference for a company that was losing lots of subscribers at the beginning of the year.
Another point that will surely bother Netflix is that, according to data from Antenna, new subscriptions were less in November – the month in which the plan with ads was launched – than during October. So it’s clear that the new plan is simply not turning out to be as attractive as they had hoped.
Things are worse for Netflix when we put things in context. As a point of comparison, when HBO Max launched its ad-supported plan in June 2021, it attracted 15% of new users. In addition, a total of 21% of service users use the cheapest plan.
Netflix says Antenna numbers are inaccurate
But what does Netflix say about it? He sent a statement in which he assures that the inaccurate figures of this agency are inaccurate.
“It is still early days for our ad-supported plan and we are pleased with its launch and performance, as well as the willingness of advertisers to partner with Netflix,” the company said.
That being said, it’s easy to see why the ad-supported plan would perform so poorly. After all, the price difference isn’t that big, and the cheapest plan doesn’t include some of the most popular software on the platform.