Almost a year has passed since the doomsday event. During this time, Netflix, driven by the vision of maximizing earnings, deprived fans of retelling the story of Adam and Eve. Playing God, they punished viewers by banishing them from Eden—the once-enjoyed luxury of an ad-free experience.
Dismantling the basic plan, they gave fans a cheaper, ad-supported alternative. However, the price tag of the ad-supported option went up, making it a challenging choice for fans.
For some viewers, Netflix became more affordable and accessible. Adding the spice of binge ads, it was becoming a hit as Netflix pushed for this tier. Yet, a very different set of data emerged during a survey.
Evercore analysts reported on December 6 that, based on their quarterly survey of Netflix subscribers, only 59% were aware of the streaming service’s ad-supported option as of November, indicating a potential decline from the 62% awareness level recorded in September.
Netflix, being the pioneer, paved the way for other platforms to take this step, killing one of the primary spirits of OTT for the sake of profits.
Evercore surveyed 1,300 Netflix subscribers in the U.S., Germany, and France, noting that low ad-supported awareness signals untapped market potential. Among those likely to cancel or who already did, 35% plan to switch to the ad-supported tier.
Respondents cited the $6.99 monthly price as a key factor. Evercore suggests that Netflix’s password-sharing crackdown is also prompting a shift, with 22% attributing their choice to this initiative.
Though Netflix has skyrocketed in terms of users due to their password crackdown and the ad-supported tier, both attracted fans like nothing else. Netflix’s recent quarter registered 247 million global subscribers, with 70% growth observed in ad-tier sign-ups. The ad tier captures 30% of new subscribers in applicable countries, making it a great success.
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