Netflix added 2.4 million households to its roster of subscribers in the third quarter of 2022, more than doubling the streaming service’s projections, Time magazine reports.
The boost in recent subscribers has put Netflix in the top spot of movie and TV streaming services worldwide, with 223 million subscribers. Thanks to new initiatives, such as its Basic with Ads subscription plan, Netflix is forecasting growth into the fourth quarter and beyond.
The formula is a proven success. Hulu — which charges $1 more per month than Netflix does for its new ad-supported plan — attracts more subscribers and generates increased profits by offering both ad-supported and ad-free options.
A Win for Netflix, Consumers and Advertisers
Launching at 9 a.m. Pacific Time Nov. 3, 2022, Netflix’s Basic with Ads plan provides that choice. In exchange for a lower monthly bill, subscribers who select the plan will see advertisements before, during and between the programs they stream on Netflix.
Time magazine estimates those consumers stand to save 20 to 40 percent on their bill. Specifically, Basic with Ads will cost $6.99 per month and feature 720p/HD video, matching the onscreen quality of Netflix’s Basic ad-free plan. Netflix promises Basic with Ads will provide: a wide variety of great TV shows and movies, a personalized viewing experience, and access through a wide range of TV and mobile devices.
Expand Your Advertising Reach
Basic with Ads will be available in the United States, United Kingdom, Canada, Mexico, France, Italy, Germany, Spain, Brazil, Japan and Korea. It joins Netflix’s existing ad-free Basic, Standard and Premium plans. As an advertiser, you will benefit from Netflix’s massive — and expanding — audience, as well as its sensible approach to ad introduction. (See a demo of the Netflix Basic with Ads user experience.)
A recent Reuters article reported that the television advertising market is currently worth a whopping $153 billion worldwide. Many industry experts agree that the time is right for ad-supported streaming — and that advertisers should be jumping in with both feet. “It’s a great move in this inflationary environment, where households continue to rationalize their streaming choices,” said Fred Boxa, associate director at consulting firm Arthur D. Little.
Ready to Score a Win for Your Business?
Netflix already commands more eyes and ears than any of its competitors. Now, it is ready to capture a whole new audience with a more affordable service. The way in which audiences are reached through Basic with Ads is expected to evolve. Netflix Chief Operating Officer Greg Peters told Deadline that Basic with Ads will initially limit ads to about five minutes per hour and employ straightforward demographic targeting based on gender and age. But, he added, “We don’t need to stay there.”
By placing an ad on Netflix, advertisers will share in the immediate benefits and tremendous growth potential that Basic with Ads offers in the digital marketing landscape. Advertisements will have an expansive reach, which means more exposure, more sales and more profits for your brand.
Imagine an ad for your company playing on Netflix. Ready to make it a reality? Contact the skilled and knowledgeable marketing team at Dream Local Digital today. We can position your ads for success on Netflix as part of a full suite of digital marketing services that include social media outreach, search engine optimization (SEO), and strategic web design.