Netflix is upgrading its ad-supported plans in terms of streaming quality and co-streaming. According to the company, users subscribing to this plan will be able to watch content in 1080p resolution (up from 720p) with support for two simultaneous streams.
These benefits are rolling out to users in Canada and Spain today. Users with ad-supported plans in 10 other markets, including the United States, will be able to take advantage of these features this month.
In a letter to investors, the company said, “We believe these enhancements will make our service even more attractive to a wider range of consumers and will further enhance the engagement of existing and new subscribers with our advertising plans. I am.”
netflix start Plan with advertisement Last November it was $6.99/month and it’s already showing good results.
In the US, the streaming company says its ad-supported plan earns a higher average revenue per membership than its $15.99-per-month standard plan.
On the earnings call, Netflix CFO Spence Neumann said the company rolled out new content to its ad-supported tier in the past quarter, putting it on par with other high-end plans “95% plus.”
He said the ad-supported plan has also shown beneficial results for the business.
“this [economics of the ad-supported plan] It’s all at a level where we believe it’s not only better for our members to take advantage of lower priced options, but it’s better for our business, and we think we can do that. , think of it like his 50% or more incremental profit contribution to the business,” he said.
According to insider intelligence, Netflix will bring in $770 million in ad revenue this year, and that figure will grow to $1.9 billion by 2024.
netflix ad revenue Image credit: insider intelligence
The company expects Netflix to have 170.6 million users in the US (down 0.5% year-on-year) and 682.7 million users worldwide (up 5.6% year-over-year) by the end of the year.
The company also Broader rollout of password sharing restrictions this summerThe company posted revenue of $8.16 billion in the first quarter of 2023, slightly below analyst expectations of $8.18 billion.
