'Netflix Ad Tier Hits 15M Monthly Active Users' - Deadline
Portfolio Pulse from Benzinga Newsdesk
Netflix's ad-supported subscription tier has reached 15 million monthly active users, up from 5 million in May. The company has not disclosed how many of its 247 million global subscribers are on this tier. The introduction of advertising in 2022 was a significant shift for Netflix, which had previously insisted it would not run ads. The move was made after consecutive quarterly declines and a one-third reduction in market value. The company also began charging customers to share passwords, leading many to switch to the ad-supported plan. This strategy has resulted in increased subscriber growth, free cash flow, and profits.

November 01, 2023 | 1:29 pm
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POSITIVE IMPACT
Netflix's ad-supported subscription tier has seen significant growth, contributing to increased subscriber numbers, free cash flow, and profits. This could potentially have a positive impact on the company's stock price.
The growth in Netflix's ad-supported tier indicates a successful strategy shift for the company, which could attract more investors and drive up the stock price. The increased subscriber numbers, free cash flow, and profits also suggest a strong financial performance, which is typically a positive signal for the stock market.
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