Netflix ad tier begins to deliver for brands | WARC | The Feed

Netflix ad tier begins to deliver for brands

Netflix’s ad tier now has more than one million monthly active users in the US and has met the number of deliveries it promised advertisers, according to Bloomberg.

The one million figure, which refers to the total reached in the first two months after its launch last year, comes from internal data seen by the media company, while the delivery nugget comes from people familiar with the deals. 

Why it matters

The figures indicate that, after a slow start, Netflix’s new ad tier is successfully attracting new customers. And as the platform prepares to institute a crackdown on password-sharing, it can expect to attract another wave of ad-tier users likely to balk at paying for ad-free access.

Takeaways 

• The ad tier accounts for some around one fifth of new sign-ups in the US, according to market data platform Antenna.
• Most of these are new or lapsed customers, not people who have changed plans. 
• Over the longer term, the ad tier could attract anywhere between 15 million and 30 million customers in the US.

The bottom line 

Bloomberg notes that Netflix’s ad tier won’t yet have made much difference to the company’s growth, unlike rival Disney+ which has also introduced an ad tier but has increased the price of its main ad-free subscription service with relatively little churn.

Sourced from Bloomberg