Streaming service Netflix, which launched an ad-supported budget plan late last year, has reached 5 million subscribers. This was announced by representatives of the company, emphasizing the large target audience for potential advertisers.
The video-streaming pioneer rolled out a $7-per-month budget plan in 12 markets last November. The plan was positioned as an alternative to ad-free options, which cost at least $10, and should appeal to more low-income and/or budget-conscious customers as competition in this niche market increases.
Netflix held a presentation to advertisers on Wednesday, emphasizing that the platform has a wide range of content, from the popular sci-fi series Stranger Things to the Korean Squid Game and other movies and series. Advertising ratings are said to have more than doubled since the beginning of the year. The total audience of the service worldwide is 232.5 million users.
According to Netflix President Global Advertising Jeremy Gorman, the 5 million active users only include adults who can subscribe to the tariff, since children are generally not shown any advertising.
Netflix executives said they would like to work with advertisers to create new types of ads that only users of the digital service can access. For example, you can play a 30-minute commercial in chunks over several days – the story unfolds like a series every time a user starts watching content on Netflix – that just doesn’t work on “linear” TV because Users “do not” do this live on the same channel”.
It is known that Netflix planned to hold a presentation of advertising services in New York as a live show, but ultimately decided to limit itself to an online event due to the appearance of protesters among the Writers Guild of America strikers feared.