Netflix’s ad-supported tier will include ad-free bonus episo…

Netflix app icon on Apple TV.
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It’s been a full year now since Netflix shook things up by introducing a tier that included ads, available in a dozen countries for $7 a month. Now, just weeks after the company’s third-quarter earnings report, Netflix is ​​offering some details about how the ad-supported tier has worked.

In a blog post written by Amy Reinhard, Netflix’s president of advertising, the company says it now has approximately 15 million global monthly active users at the ad-supported level. The Q3 letter sent to shareholders said about 30% of new sign-ups were for the cheaper, ad-supported tier, up 70% quarter over quarter.

Reinhard wrote, “We have built an incredible foundation by focusing on the areas that advertisers have told us are most important, while also providing unforgettable entertainment at an unbeatable value.” “As we continue to build and optimize our service, we are excited by our progress.”

Also pay attention to the changes coming in the new year. Reinhard writes that a new “binge advertising” format would actually benefit customers who cannot skip an ad-free episode by showing it after three consecutive viewings. Look for it by April.

If you’re a US consumer, you’ll also start seeing QR codes in ads in 2024.

“Our goal is not just to offer the same products and tools the industry expects,” Reinhard added, “although we have made considerable progress on this front over the past year. It’s about creating something bigger and better than what exists today.”

Netflix’s ad-supported plan launched in November 2022 and quickly proved its worth. Releasing its first-quarter earnings, the company said that “Our advertising plan is already total [average revenue per user] “Bigger than our standard plan.” That standard plan costs more than double the ad-supported plan at $15.50 per month, but obviously doesn’t include any ad revenue.

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