The company had five million monthly ad-tier users in May and has been hiking prices on its ad-free options to nudge more subscribers to the other tier, where commercials help bring in more revenue per user.
After a slow start since its launch last November, around 1 million accounts are thought to be subscribed to Netflix’s ad-supported tier in the United States, according to internal figures seen by Bloomberg.
According to Ampere Analysis data, there was a negative correlation between the volume of upcoming Netflix Originals and the level of discount Netflix is offering for subscriptions to its new ad-funded tier in non-English speaking markets.
Netflix announced that its lower priced ad-supported plan, which the company calls Basic with Ads, will cost US$6.99 a month in the United States and launch on November 3.