- Antenna data indicated a modest start Netflix, Inc NFLX $6.99 per month ad-supported option.
- The subscription analytics company found that the “Basic with Ads” plan accounted for 9% of Netflix signups in the US in November, making it the least popular options.
- About 57% of first-month subscribers to the ad-supported tier were people rejoining the service or signing up for the first time, while 43% were downgraded from pricier plans, according to Antenna, the Wall Street Journal reports.
- Also read: The fast launch of Netflix’s advertising tier and its lack of responsiveness are a concern for this analyst
- Warner Bros. Discovery, Inc WBDThe HBO Max-owned company, which launched its ad-supported plan for $9.99 per month in June 2021, had more robust early results, according to Antenna.
- HBO Max’s ad-supported plan accounted for 15% of new U.S. signups in its first month, and just 14% of new customers downgraded from the premium tier.
- “For us, advertising is crawl, walk, run. We’re definitely ‘crawling’ right now,” co-chief executive Ted Sarandos said at an investor conference earlier this month.
- Netflix’s overall subscriber growth in the US was lower in November than in October, according to Antenna.
- Antenna felt it was too early to predict the plan’s growth trajectory.
- At the moment, Netflix’s ad tier was similar to the basic, best-priced plan performance, which was typically the least popular.
- Sarandos said earlier this month that Netflix would likely launch several ad-supported service tiers over time.
- Walt Disney Co DIS Disney+ launched its rival ad tier Earlier this month as part of a price increase.
- Price promotion: NFLX shares traded up 1.11% to $291.40 on the last check Wednesday.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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