There was a lot of outcry when Netflix announced the introduction of ads on its platform. The streaming service introduced an ad-powered plan in late 2022 in select regions. At $6.99 per month, it was considerably cheaper than non-ad plans, even back in 2022.
In fact, adding another user slot to one of the ad-free Netfllix plans is more expensive than subscribing to the ad-powered plan.
Netflix did a lot to push the ad-powered plan. First called Basic with ads, it soon was rebranded to Standard with ads, to highlight its advantages over Netflix’s basic plan.
This was not the only decision that Netflix made. It increased the price of regular prices several times since the introduction of the ad-powered plan, and is now pushing the remaining basic plan subscribers to other plans by shutting down the cheapest ad-free plan.
All of these changes increased the attractiveness of the ad-powered plan over Netflix’s other plans.
There are downsides to subscribing to Standard with ads on Netflix. Besides ads, which is the main issue that streaming users may have, it does not include all shows and movies of Netflix’s catalog.
Streaming started as a replacement for cable TV. It promised an ad-free experience and unlimited access to content. This changed with the introduction of ad-powered plans.
Currently, Netflix customers may either pay $6.99 for the ad-powered Standard with ads plan, or at least $15.49 for the standard plan, which does not show ads.
This month, monthly active users of Netflix’s ad-supported plan reached 40 million for the first time. Just this January, the number sat at 23 million.
While that is still not the majority of Netflix’s 270 million subscribers, new ad-plan subscribers make up 40% of the service’s new subscribers currently. With the next price hike looming on the horizon, that ratio is projected to increase even more, provided that Standard with ads will not see price increases again.
Netflix continues to invest in live programming. While coverage differs from region to region, Netflix is especially active in the United States. Viewers will be able to watch two Christmas Day games from the NFL and WWE RAW matches from 2025 on.
Closing Words
Netflix will continue to push Standard with ads over its other plans. The cancelling of Basic plans will push a percentage of these subscribers to the ad-powered plan because of its price advantage over the Standard plan.
Netflix is also working on new ad formats, including binge ads and ads in games, to increase revenue generated by its ad powered plan.
Since other streaming services follow Netflix’s lead, streaming is either getting more expensive for the majority of users or more annoying, because of advertisement.
What about you? Are you subscribed to streaming services? Do you mind ad-powered plans?
Summary
Article Name
Netflix’s Standard with Ads plan grows to 40 million subscribers
Description
Netflix has grown its ad-supported plan to over 40 million subscribers as of May 2024 and is working on new ad formats.
Author
Martin Brinkmann
Publisher
Ghacks Technology News
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