"Survey Suggests Netflix Ad Plan May Have More Than 20 Million Subscribers In U.S." - Variety
Portfolio Pulse from Benzinga Newsdesk
A HarrisX survey indicates Netflix's ad-supported subscription tier is the second most popular in the U.S., suggesting over 20 million domestic subscribers. This growth signifies a successful shift towards ad revenue, with potential for further expansion as Netflix plans to eliminate the ad-free Basic plan in some markets. The survey also highlights the ad tier's role in attracting new subscribers, especially younger users, as Netflix focuses more on engagement and ad revenue in a slow-growth model.
April 29, 2024 | 3:13 pm
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POSITIVE IMPACT
Netflix's ad-supported tier's success, with over 20 million estimated U.S. subscribers, indicates a positive shift towards ad revenue and potential for further market penetration. The elimination of the Basic plan and focus on ad engagement suggest strategic moves to sustain growth.
The significant subscriber base for Netflix's ad-supported tier demonstrates effective market penetration and a successful pivot towards generating ad revenue. The strategic elimination of the Basic plan and focus on ad engagement are likely to sustain and potentially accelerate growth, making this news highly relevant and important for investors. The positive impact on NFLX's stock is based on the potential for increased revenue and market share.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100