Tech

Netflix: new subscribers refuse the offer with ads, it’s a failure

At the beginning of November, Netflix launched a cheaper formula, at 6 euros per month, but financed by advertising. A month later, the first figures fell: according to the Wall Street Journal, the offer was the least popular with new American subscribers. Only 9% of them opted for this offer. In addition, a very large number of subscribers to the formula with advertising are already Netflix customers. Netflix’s failure is therefore twofold.

Netflix essential ad
Credits: Netflix

There are more and more streaming services. Premium Video. Netflix. OCS. Channel Play. Disney+. Paramount+. Etc. With each offer, you have to pay a new subscription. Faced with this increasingly plethoric offer, households must make choices. Some will choose to unsubscribe from their offer to adopt another. Others will take advantage of combined promotions. But few are those who will increase their streaming budget.

Read also – Netflix: here is how much you will have to pay to share the account with a friend from 2023

Unless there are subscriptions ” low-cost », developed to attract new users. It is precisely for this purpose that Netflix launched its ad-supported subscription in November 2022. The holder accesses the same content. But advertising comes in from time to time. In return, the price to be paid drop from 8.99 euros to 5.99 euros. A month later, it is time to take stock of this initiative. And it is unfortunately not good.

Netflix’s advertised offer fails to attract new customers

The American daily Wall Street Journal has published the results of a study by the Antenna Institute, a specialist in the analysis of subscription television services. According to this document, Netflix’s low cost offer only convinced 9% of its new subscribers in the United States. This means that 91% of registrations are for standard offers, without advertising. In comparison, HBO Max’s advertising offer convinced 15% of new subscribers. It’s much better.

Another interesting indicator: the percentage of Netflix subscribers who have abandoned their offer to adopt the one with advertising. 43% of customers who have subscribed to Netflix’s low-cost offer are in this case. This is much more than the 14% recorded by HBO Max. This metric is important, because these subscribers bring less money to the streaming service. If HBO Max has managed to convince its “premium” customers not to migrate to the low cost subscription, this is not the case for Netflix.

The remaining 57% are therefore new customers who have never subscribed to Netflix or old customers who return, driven by the price. At the end of November, 0.2% of all Netflix subscribers had subscribed to the low cost offerwhether they are new entrants, veterans of the service or users returning after having terminated their offer.

Source : Wall Street Journal

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *