Last month, Netflix launched the Basic with Ads subscription plan and definitely entered the advertising market. On the other hand, the rollout of the new model has been relatively slow, at least in the United States.
According to data compiled by analyst firm Antenna, only 9% of new US subscribers to the platform have opted for the recent subscription plan. For comparison, competitor HBO Max made a similar plan available in 2021 and received 15% of new sign-ups for the tier during that time.
Last week, Digday reported that Netflix paid back advertisers after failing to meet audience guarantees by up to 20%. In that sense, the streaming platform’s recent model points to further evidence of a slow start for the transitional service.
However, Netflix disputes Antenna’s numbers, which are based on third-party consumer data. According to a company spokesperson, it will take some time to more accurately evaluate the Basic with Ads plan.
“It is still very early days for our advertising support plan and we are pleased with its launch and engagement, as well as advertisers’ desire to partner with Netflix,” the spokesperson said in a statement to the Wall Street Journal.
Furthermore, the new advertising model is a thought involving Netflix’s long-term future, with a build that is, in fact, expected to be slower. “What we launched at the beginning was basically six months after we announced that we were doing a commercial launch,” said Jeremi Gorman, the platform’s president of worldwide advertising, in conversation with Digday.
“I think the biggest obstacles will actually be the temptation to rush into that perfect experience without laying the foundation first. I think it’s really important that we continue to strive to get things right, like measurement, delivery, all those basics,” Gorman explains.
For more than a decade, Netflix has established itself in the market as a subscription-only service and is now trying to follow the current trend of competitors. In the Antenna survey it can be seen that a large part of the subscribers of Paramount+ and other US platforms, such as Hulu and Peacock, are subscribed to advertising plans.
information via The limit
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Source: Olhar Digital
Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.
