Though the pricing indeed looked like an illusion, Netflix’s Ad-Supported tier is now reaching a level on paper. This marks a significant step towards the advertisement-incorporated future of OTT platforms, and Netflix remains a pioneer in this regard.
According to the streaming giant’s blog post, Netflix now has 15 million users who have opted for this cheaper plan. By comparison, they had reached a total of 6 million by May of this year.
Now, there are certain prominent factors contributing to the success of this ‘annoying but effective’ strategy. Firstly, Netflix is becoming more expensive, which doesn’t leave much room for viewers; they have to settle for some ‘cheaper plans’.
Additionally, Netflix is advertising it in a way that definitely makes users think the plan comes with a less hefty price tag. Following in Prime Video’s footsteps, Netflix’s strategy to make it ‘look cheaper’ has worked.
And as more and more platforms are joining the dark side regarding the ‘let’s show ads with the same price’ campaign, as a front runner, Netflix is benefiting more than any other organizations.
Just in the USA, Netflix gained 70% more users in the ad-supported plan since last quarter and on a global standpoint, on average, there is a 30% subscription hike in that specific category.
The world of OTT is already moving towards a future where advertisements are always an option. Netflix’s recent strategy will push it further, as they are now introducing the concept of ‘Binge ads’.
Obviously, it’s not something that will change everything in the OTT space, but it will give a sense of reward to the hardcore viewers. As the platform celebrated its first birthday in the advertisement space, they will soon bring some ‘innovations’ to the viewing experience.