Netflix’s ad-supported users could see some rewards for binge-watching shows on the platform. That’s right, Netflix users subscribed to the ad-based plan could get some ad-free episodes if they’re chugging through a show on a slow Sunday afternoon. The news comes courtesy of the streamer itself, as they celebrated 15 million users being subscribed to the ad0based tier of their service yesterday. Netflix President of Advertising Amy Reinhard mentioned the added benefit for ad-supported tier subscribers during her blog post on the milestone yesterday. At this point, most streaming operations have already integrated an ad-supported plan or are in the process of getting that together.
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“Starting in Q1 2024, our advertisers globally will be able to utilize our new binge ad (wt) format that taps into the viewing behavior of watching multiple episodes in a row,” she wrote. “After watching three consecutive episodes, members will be presented with a fourth episode ad-free. In early 2024, we will also launch the ability to showcase QR codes in advertising creative running on Netflix in the US. “
Netflix Moves Towards Ads
As most streamers lurch toward advertisements, Netflix was leading the way. In a landscape that resembles broadcast TV or cable more with each passing day, the new focus on advertisements is just the latest trend in the quest to recreate the past. With streaming password crackdowns and rising prices all around, companies are trying to find ways to keep that cash flow up despite economic shifts and the continued effects of a global health situation that have not abated. Here’s what the ad exec had to say about the first year of ads for Netflix.
“One year ago we launched Netflix’s ad-supported plan. We have built an incredible foundation, focusing on areas advertisers told us matter most, all while delivering unmissable entertainment at an unbeatable value,” Reinhard explained. “As we continue to build and adapt our service, we’re excited about the progress we’ve made and that we now reach 15 million global monthly active users.”
“Our goal isn’t just to offer the same products and tools the industry has come to expect — although we’ve made a lot of progress on that front over the last year. It’s to build something bigger and better than what exists today,” the executive continued. “We want to shape the future of advertising on Netflix and help marketers tap into the amazing fandom generated by our must-watch shows and movies.”
Netflix Eliminates Password Sharing
One of the big pushes that Netflix has made is that passwords can no longer be shared between households. So, if you were using your parents or grandkids Netflix account, you were basically forced to buy your own account. In the United States and other territories, this decisions was paired with rising costs and that caused considerable outcry on social media. However, the company argues it has been worth it in the long run, but a lot of the numbers are still very fresh and need more unpacking.
“While we’ve made steady progress this year, we have more work to do to reaccelerate our growth,” Netflix said to shareholders in a previous letter. “We remain focused on: creating a steady drumbeat of must watch shows and movies; improving monetization; growing the enjoyment of our games; and investing to improve our service for members.”
“Now that we’ve launched paid sharing broadly, we have increased confidence in our financial outlook,” they added. “We expect revenue growth will accelerate in the second half of 2023 as monetization grows from our most recent paid sharing launch and we expand our initiative across nearly all remaining countries plus the continued steady growth in our ad-supported plan.”
Do you think this ad-supported change is a good idea? Let us know in the comments!