Netflix has long been hesitant to integrate advertising into its streaming offering. But now customers have also started liking these cheap advertising subscriptions. According to its own information, Netflix now has 70 million members with ad subscriptions – two years after its launch. This is approximately 25 percent of all customers. Every second new customer books a subscription with advertising.
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Starting in November 2022, Netflix is ​​offering significantly cheaper ad subscriptions. The new tariffs began rolling out in twelve countries, including Germany. A year later, Netflix had 15 million ad-viewing subscribers. Since then, the number of Netflix subscribers with ad subscriptions has continued to increase. This year there were 22 million in January, 40 million in May. Variety writes,
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This number has almost doubled in the last six months. Now Netflix explainsThe streaming service has 70 million monthly active subscribers worldwide with ad subscriptions. With Netflix reporting 282.7 million subscribers in October, ad subscription subscribers account for nearly a quarter of all subscribers. Advertisement subscriptions also appear to be popular, with 50 percent of all new subscribers choosing this tariff, according to Netflix.
There are probably many reasons for this. On the one hand, advertised subscription prices are lower than tariffs without advertising, and on the other hand, Netflix is ​​increasingly taking action against account sharing, including in Germany and Austria. Customers who can share the password are given the opportunity to book additional members for a fee of 5 euros per month. Netflix recently expanded this offer and now also offers affordable additional subscriptions with ads. Then the additional subscription costs only 4 instead of 5 euros. Due to this, the number of advertising subscriptions is also likely to increase.
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There is a huge price difference for new customers. In April this year, Netflix recently raised prices by 20 euros per month. This is a premium subscription with excellent video quality (4K), HDR and 3D audio. Standard subscription with Full HD streaming (1080p) now costs 14 euros. The previously cheapest basic subscription without advertising was also canceled in Germany in order to drive more new customers to the advertising subscription, which is offered for 5 euros per month. This is in line with the standard subscription, but with four to five minutes of advertising per hour.
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Less than six months after the introduction of the ad subscription, Netflix said that an ad subscription made more money per user than a customer with a standard subscription. It also appears in the successful line item, which Netflix now refers to. For example, advertising spots for two live games of the North American football league NFL were fully booked on Christmas. Various advertisers have been found for the upcoming second season of the TV series “Squid Game,” with Kia being the exclusive partner in the series’ native Korea.
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