Netflix says subscriptions for its ad-tier service have TRIPLED in five months to 15 million – up from 5M in May

• Netflix announced their subscribers of its ad-based tier have increased three-fold over just five months
• Their exponential growth in users is because of their one-year-old option
• The ad-supported plan costs only $6.99 a month, compared to their premium plan ($22.99) and their standard plan ($15.49) 

Netflix has seen a massive jump in subscribes of its ad-based subscription with 15 million users now willing to bear a few commercials to save some bucks. 

The streaming platform celebrated the one-year anniversary of their ad-tier option with a celebratory blog post – where they revealed their subscribers have grown exponentially since they rolled out the more affordable option.

Amy Reinhard, the newly appointed head of advertising at the $180-billion-company, announced Netflix has 15 million global monthly active users on the tier – up from the 5 million they boasted in May.

The three-fold increase over just five months suggested that users are more open to the platform – which first began streaming in 2007 – now that there is a more affordable option.  

The news has been welcomed on Wall Street with Netflix stock up more than a percent by midday Wednesday – now sitting at $416.22.

Netflix introduced its ad-supported plan one year ago and has already seen a huge increase in subscribers

There are now 15 million users on the ad-based tier compared to just 5 million in May. The company made the announcement in celebrating a year since the tier was offered  

In an earnings report, the streaming giant revealed its ad-supported offer was gaining popularity with the number of members increasing nearly 70 percent in the quarter

‘We have built an incredible foundation, focusing on areas advertisers told us matter most, all while delivering unmissable entertainment at an unbeatable value,’ Reinhard said

Compared to Netflix’s premium plan, which is $22.99 a month, and the standard plan, which is $15.49 a month – the ‘standard with ads’ option is just $6.99 a month.

The ad-tier plan includes standard features – such as full HD and two-device watching – but with around four minutes of ads per hour of watch time.

Amy Reinhard (pictured), the newly appointed head of advertising at the $180-billion-company, announced Netflix has 15 million global monthly active users on the tier – up from the 5 million they boasted in May

The standard option allows subscribers to enjoy unlimited movies, TV shows and mobile games ad-free in full HD on two supported devices – with the option to add one extra member who doesn’t live in the same household.

Netflix’s premium plan offers all of the same perks with four supported devices at a time, ultra HD, downloads on up to six devices at a time, Netflix spatial audio and the option to add two extra member swho don’t live with the primary subscriber. 

The extra member slots offered on the standard and premium-tier plans cost $7.99 each month.

In Reinhard’s blog post, she said: ‘One year ago we launched Netflix’s ad-supported plan. We have built an incredible foundation, focusing on areas advertisers told us matter most, all while delivering unmissable entertainment at an unbeatable value.

‘As we continue to build and adapt our service, we’re excited about the progress we’ve made and that we now reach 15 million global monthly active users.

The head of marketing described their advertisement options: ‘(We) are offering additional ad products and features. After starting with :15 and :30 second ads, we can now run :10, :20, and :60 second ads globally — offering clients around the world multiple formats to leverage.’

The streaming giant, led by co-CEOs Greg Peters and Ted Sarandos (pictured), saw its number of users grow by more than 10 percent to 247 million in the recently ended third quarter

‘As we continue to build and adapt our service, we’re excited about the progress we’ve made and that we now reach 15 million global monthly active users,’ Reinhard said 

The ad-based subscription plan includes advertisements before and during TV shows and movies, but for a lower price than its original ad-free service Pictured: Cast from its award-winning series Orange is the new Black 

The increase in ad-based users comes as Netflix cracked down on account sharing to boost its dwindling fortunes by forcing freeloaders to pay for their own accounts.

Under rules brought to 103 countries including the US and UK in May – people who were watching Netflix under someone else’s account had to create and pay for their own logins. 

Password sharing is a habit adopted by Netflix users of distributing their password to other people who live outside their household.

This lets these so called ‘freeloaders’ access their account, create their own profile and watch films and TV shows without paying a penny.

Netflix introduced their new policy in a bid to shore up revenue after a rough period. 

It has complained that more than 100 million households were sharing accounts. 

Compared to their premium plan, which is $22.99 a month, and the standard plan, which is $15.49 a month – the ‘standard with ads’ option is just $6.99 a month Pictured: Cast from Netflix hit Stranger Things 

A government agency warned that giving out your login details for streaming services to other people is against the law.

Watching shows on Netflix, Amazon Prime and Disney+ without paying the relevant subscription breaks copyright law, the Intellectual Property Office said.

In mid-October, the streaming giant saw its number of total users grow by more than 10 percent to 247 million in the recently ended third quarter.  

In an earnings report, the streaming giant revealed its ad-supported offer was gaining popularity with the number of members increasing nearly 70 percent in the quarter.

The company reported a profit of $1.68billion on revenue of $8.5billion in the quarter, beating market expectations with its earnings figures. 

Source: Read Full Article