Featured Image Credit: Netflix
Topics: Netflix, TV And Film
Earlier this year, it was revealed that Netflix would follow in the footsteps of several other streaming services by introducing an ad-supported tier at a cheaper price point and just as promised, that tier arrived in November. Given the rising cost of living, you’d imagine that people would be looking to save money where they can but Netflix’s ad-supported tier is struggling to gain subscribers.
The reveal of the new tier came shortly after it was reported that Netflix was bleeding subscribers. The streamer’s Q2 earnings showed that 970,000 subscribers had been lost in the space of just a few months. This is a massive drop when you consider that just 200,000 were lost in the previous quarter. It’s assumed that the ad tier was created to lure people back in, but that plan doesn’t seem to be working.
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As reported by The Wall Street Journal, subscription analytics firm Antenna has revealed that only around 9% of Netflix’s new subscribers are choosing to opt for the cheaper ad-supported tier. The new tier only launched one month ago but Antenna further estimated that overall, fewer people signed up for Netflix in November than they did in October.
As GamesRadar reports, HBO Max launched a similar tier in June of last year and Antenna then reported that it accounted for 15% of sign-ups in its first month. This has since risen to 21%, so it’s certainly fairing better than Netflix’s latest effort.
It may not actually be the ads that are putting people off. The basic tier only allows users to stream on one device at a time, with a maximum quality of 720p. It’s thought that around four to five minutes worth of ads play for subscribers every hour, and this will cost you £4.99/$6.99 a month - £2/$3 less than the next tier up. Hm, it is a saving, but seemingly one that many don’t think is worth the sacrifice.