The bet on Netflix ads is starting to pay off. In the results published this week, the platform indicates that registrations to its plan with advertising They already represent 30% of new users in the countries in which the format has been implemented.
It is not the only positive data that shows that the bet is already beginning to pay off. New users who opted for the advertising planincreased by 70% between July and Septembercompared to the previous three months.
It is worth remembering that Netflix has launched its advertising plan in only 12 of the 190 countries in which the company has clients, so the growth margin of this offer is still very high. In parallel, the platform announced new price increases in France, the United Kingdom and the United States, while it continues to eliminate its most basic offer in several countries, as will happen soon in Spain.
This strategy is combined with the improvement of limits on account sharing. The company and analysts have been pleased with the low levels of subscription cancellations resulting from both the end of shared accounts and price increases. In fact, the company gained almost nine million users in the last quarter, a figure that has taken its shares to a day of complete glory with increases of more than 16%. Therefore, it makes sense to follow the same strategy that seems to lead to a Netflix with a somewhat higher price for a ‘premium’ user and a basic option with ads that remains “cheaper than a movie ticket”, as defined by the company itself in its letter to shareholders.
Likewise, both the co-CEOs, Ted Sarandos y Greg Peterslike the company’s financial director, Spence Neumann, have been insisting that the effects of this policy will be revealed “quarter by quarter” as new hits or new seasons of series with many followers arrive on the platform that will bring back to service to those users who decided to unsubscribe by stopping sharing accounts.