What is Netflix up to with ads now?
Netflix is ready to increase the prices of its subscriptions again and is thinking of new stratagems to make the offer that includes advertising more attractive
Netflix seems to be increasingly happy with its choice to provide tariff plans that include commercials: the TV streaming giant declared that it has reached 15 million active users per month. Despite the well-known crackdown on password sharing and the increase in prices for subscriptions that do not include commercials, the Group tripled the monthly users who signed up for the basic package with advertising. This is also why he expects some new features to come.
NETFLIX AND ADVERTISEMENTS
Already during the first quarter of 2024, those who devour television series and watch three consecutive episodes of the same show with the "Standard with advertising" subscription will enjoy a bonus that will exempt them from advertising in the fourth episode. Otherwise, the amount of ads with each episode will remain unchanged.
INCREASES TO SUBSCRIPTIONS
The premium plan, which offers Ultra HD streaming and allows multiple devices to be online at the same time, is intended by the company to increase by $3, reaching $22.99 per month, while the basic plan, available for existing subscribers, it will increase by $2, to $11.99 per month.
THE LATEST QUARTERLY
After the series binge during the pandemic period, Netflix collapsed by around 75%. But now the latest quarterly report also confirms that the Group is in full reorganization. In the three-month period ending September 30, Netflix generated revenue of $8.54 billion and earnings of $3.73 per share,
THE CONSOLE REMAINS OFF
Where the company continues to struggle a lot, however, is in the gaming sector. Of Netflix's 247.15 million subscribers, less than 1% play the approximately 80 titles included in the subscription service on a daily basis.
This is not official data but a report released by the market analysis company Apptopia taken up by CNBC , which also stated that in September an expected average of 2.2 million users played one or more games per day. It is also estimated that Netflix games have been downloaded 70.5 million times worldwide.
INCREASES ALSO FOR THE RIVALS
The entire sector presents an increasingly higher bill to subscribers. The House of Mickey Mouse, fresh from its acquisition of streaming platform Hulu , increased the monthly cost of Disney+ without ads to $13.99, by about 27% and the cost of Hulu without ads increased by 20% to 17, $99.
At the end of October, the Cupertino giant announced the increase in the price of the subscription for its streaming service, Apple TV, to $9.99 per month.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia-on-demand/che-combina-ora-netflix-con-le-pubblicita/ on Sun, 05 Nov 2023 15:08:33 +0000.