Competition in the streaming market is fierce. According to a report from Insider Intelligence, Netflix is expected to surpass Disney+ in terms of advertising revenue in the United States in 2024. The move is anchored by rising subscription prices and bans on password sharing, measures that are attracting more viewers to the advertising-supported plan from the company.
According to Insider Intelligence’s report, Netflix’s progress was possible thanks to the nearly one-third increase in subscribers to the company’s ad-supported plan. This movement is a consequence of the ban on sharing passwords. In total, almost 9 million new customers signed up in the third quarter of 2023.
The company also raised the prices of its ad-free plans in October to attract more customers to its cheapest offering, which launched in November last year for around $7 a month. Netflix still managed to sell ads at a slightly higher price than rivals, taking advantage of pent-up demand from advertisers who had been waiting years for its ad-supported plan.
Since viewers tend to spend more time each day with Netflix than with other streaming services, Netflix’s advertising revenue is expected to grow significantly. Disney is having a harder time right now because they’ve had all these box office failures.
Ross Benes, Insider Intelligence analyst
However, according to the report, Disney may soon close the gap with the growing adoption of its ad-supported plan and the combination of Disney+ and Hulu into a single platform.
The post As Password Sharing Ends, Netflix’s Revenue Expected to Increase appeared first on Olhar Digital.
Source: Olhar Digital
Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.
