The news: Netflix’s ad-supported subscription tier has reached 1 million monthly active video-on-demand users as of January, according to “month-old” data reviewed by Bloomberg. That’s active users and not subscribers, meaning the figure includes viewers on the same account.
The slow spin-up: Netflix’s ad-supported tier was launched in a hurry last year to appease investors after more than a decade of arguing against introducing advertising to the platform. But while the warming period for the new tier was slow, Netflix seemed unbothered by its initial lackluster performance.
Building confidence: With viewership expectations being met and the ball beginning to roll, Netflix is looking to the future of its advertising business and whether it should go it alone or stick it out with Microsoft.
Our take: Netflix has shaken off the rough launch of its new subscription tier, but it’s still not the revenue generator the company is hoping for. If AVOD does become a hefty source of revenues and subscriptions for Netflix, it will take years for the results to materialize. In the meantime, its boost of confidence after a shaky first go is giving glimpses into how the company is planning for the longer term.
11 Times SquareNew York, NY 100361-800-405-0844