Sunday, April 30, 2023

Netflix and their new streaming with ads

I was wondering how well Netflix's new ad-supported plans are doing. There hasn't been a lot of criticial reporting on it, and I'm sure others are wondering too, so let's go take a look at what we can find.

Their Q1 2023 only has a few details, but it sounds like the $7/month ad plan generates more total revenue than the $10/month basic, but does not appear to be more profitable and does not appear to be getting a lot of subscribers.

It's not surprising that customers aren't in love with the new Netflix ad plan. It's got ads and the catalog is smaller, and it's only $3 more a month to upgrade to no ads in basic.

It's also not surprising that Netflix is able to get at least $3/month in ad revenue from these viewers, though it might be surprising if it was also substantially more profitable given the cost of acquiring and serving those ads.

It'll take more time before we'll know how this goes for Netflix. But so far it doesn't seem like it's much of a success?

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