Subscription Packages With Binary Advertising, Netflix: It's Still Very Early!

Netflix intends to present subscription plans with ads (photo: dock.netflix)

JAKARTA - Netflix intends to bring subscription packages with ads to grow new users, but that's not up to its expectations.

According to data from analytics firm Antenna, Netflix only got 9 percent of new subscribers in the United States (US), who signed up for the Basic with Ads package last month.

When compared with 15 percent of new registrants competing in HBO Max, who chose similar fields during its first month of launch in 2021. The Basic with Ads Netflix package was launched on November 3, which was priced at USD 6.99 for IDR 109 thousand per month.

The data proves that Netflix's efforts to present ads on its platform have yielded no better results. However, Netflix denies the accuracy of the Antenna figure, which is based on consumer data from third parties.

"It's still very early for our ad support levels and we are pleased with the launch and engagement, as well as the advertiser's desire to partner with Netflix," a Netflix spokesperson said in a statement to The Wall Street Journal (WSJ).

The company has publicly detailed that the launch of the ad-supported package is planned to be built slowly from time to time.

"What we launched initially was basically six months after we announced that we were at all conducting an ad-supported launch," Netflix president of worldwide advertising Jeremi Gorman told Digiday in a recent interview.

Gorman also emphasized that his current offer does not represent their long-term ambitions. "I think the biggest obstacle is actually the temptation to rush towards that perfect experience without laying its foundation first," said Gorman.

"I think it is very important for us to remain committed to doing the right thing, such as measuring, shipping, all that basis."

Launching The Verge, Friday, December 23, early next year, Netflix also plans to start charging users who share passwords with those who are not at home, but use the same account.

The plan, Netflix intends to encourage existing users to pay for ad-supported packages at low cost instead of paying these additional fees.