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Despite a sluggish start, Netflix is happy with the ad-supported tier’s growth

The ad-supported Netflix service finally went live in several regions in November 2022, after months of speculation. However, you can only watch on one device at a maximum quality of 720p with the ad-supported subscription, which is $3 less expensive than the ad-free Basic plan. The service does not allow for offline viewing, and each hour may have as much as five to seven minutes of commercials. Given the restrictions, it’s surprising that Netflix’s ad-supported tier has gained so much traction. The corporation, though, claims to be “pleased with the growth” of even its most affordable plan.

Netflix’s Present of Worldwide Advertising, Jeremi Gorman, said the business is pleased with the number of advertisers it has been able to attract at the just finished CES 2023. With this system, the streaming service may avoid showing the same ad to the same viewers too often, keeping viewers interested.

There were reportedly few takers for Netflix’s ad-supported plan during its inaugural month in the United States, with just 9 percent of new members choosing the option. Reportedly failing to fulfil the minimum viewing promise by as much as 20 percent due to the poor start, Netflix returned money to advertisers. Gorman’s reaction, though, implies the situation isn’t as dire, but she offered no statistics to back up her claim.

The CEO also addressed challenges with licencing that make certain Netflix shows and movies inaccessible on the ad-supported plan. The ability to display advertisements on this material was not a part of the original agreements. Thus, Netflix has been unable to include these programmes in its basic package. Although Gorman claims the “great bulk” of material users view is already accessible on the ad-supported tier, the business is now renegotiating the licence terms.

Netflix has no plans to provide its ad-supported service in any new territories at this time. However, in the long run, it plans to expand into other areas where its advertising platform shows promise. In addition, the business is working on a system that would dynamically place advertising next to scenes that would be beneficial to an advertiser, as well as single-show sponsorships and a system that would enable advertisers to target ads depending on the age and gender of the viewers.