An ad-supported plan coming from the streaming platform later this year Netflix Inc NFLX could add additional subscribers and revenue. Here’s a look at how many subscribers Netflix can add with its new plan.
What happened: Netflix estimates its ad-supported streaming plan can add 40 million unique viewers by Q3 2023 Wall Street Journal (WSJ), came as the company met with ad buyers.
Netflix had 4.4 million ad-supported unique viewers worldwide by the end of 2022, including 1.1 million unique viewers in the United States. Of the 40 million unique viewers estimated for Q3 2023, 13.3 million are expected to be from the United States
The company believes that unique viewers outnumber subscribers because more than one person in each household watches content.
“We’re still in the early stages of deciding how to launch a lower-priced, ad-supported tier, and no decisions have been made,” a Netflix spokeswoman told WSJ.
Netflix hasn’t announced a price for the new ad-supported plan, and recently rejected a rumored price level of $7 to $9 per month, as reported by Bloomberg.
Related link: Here’s why Netflix offers consumers an ad-supported plan
Why it matters: Netflix partners with Microsoft Corporation MSFT Earlier this year to help with its advertising sales.
Netflix is trying to get advertising partners in more than 12 countries where it will initially launch.
Netflix limits the times it shows advertisements and doesn’t air advertisements during certain original movies and children’s content.
It was reported Earlier this month that Netflix is targeting high prices for its advertising. According to a report by the WSJ, Netflix was targeting a rate of $65 CPM, or $65 per 1,000 ad units viewed. Over time, Netflix’s CPM increased to $80.
The ad-supported prices Netflix charges are similar to those media companies charge for Super Bowl commercials.
Netflix is also said to be aiming for $10 million…
