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Netflix's (NFLX) Ad-Based Plan Hits 23M Monthly Active Users
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Netflix (NFLX - Free Report) is experiencing significant growth in its advertising-based plan, with the president of advertising, Amy Reinhard, revealing that the service has surpassed 23 million global monthly active users at the Variety Entertainment Summit at CES 2024. This is a notable increase from the previously reported 15 million users a little over two months ago.
Reinhard highlighted the strong engagement levels among users on ad-supported plans, with 85% of them streaming on the platform for more than two hours per day. This suggests that the ad-supported model is resonating well with Netflix's audience.
Netflix runs 10, 20 and 60-second ads on the ad-based plan, which was launched in the United States, Canada, Australia, Brazil, France, Italy, Germany, Japan, Korea, Mexico, Spain and the U.K. in 2022.
The Basic With Ads plan is priced at $6.99 per month in the United States, which is less than half the cost of the Standard plan at $15.49 per month. This pricing strategy could be a key factor in attracting a broader audience to the ad-supported tier.
Ad-tier subscriptions reportedly account for approximately 30% of all new signups in the 12 countries where the platform has been launched.
The company’s ad-tech deal with Microsoft (MSFT - Free Report) as its global advertising technology and sales partner has played a pivotal role in the success of Netflix’s advertising strategy and technology infrastructure.
NFLX’s Solid Content Portfolio to Drive Top-Line Growth
Netflix’s focus on originals, both movies and TV shows, has been a major growth driver. The Zacks Consensus Estimate for NFLX’s revenues for 2023 is pegged at $33.60 billion, indicating growth of 6.29% year over year. The consensus mark for earnings has increased by a penny over the past 30 days to $2.19 per share. The company is scheduled to launch a bundle of comedy content like The Hollywood Bowl, The Greek Theatre, Dynasty Typewriter and others as part of its upcoming event, Netflix Is a Joke Fest.
Squid Game Season 2, Sweet Home Season 3, All Of Us Are Dead 2, Mercy For None, Everything Will Come True and The Bequeathed are among the shows lined up for K-drama fans in 2024.
Netflix intends to bring up more strategies that curtail its costs and, at the same time, benefit its users. Recently, it has been planning to reward binge-watchers with ad-free episodes to boost user retention. Users who view three episodes in a row will receive one ad-free episode.
Netflix has outperformed Disney but underperformed Amazon. While shares of DIS have declined 1%, AMZN has returned 17.5% over the past six months.
Amazon is set to launch several content on its streaming platform, Amazon Prime Videos, including Role Play, Kevin James: Irregardless and more. Disney has plans to unveil several comedy content like Deadpool 3, Inside Out 2, Moana and many more.
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Netflix's (NFLX) Ad-Based Plan Hits 23M Monthly Active Users
Netflix (NFLX - Free Report) is experiencing significant growth in its advertising-based plan, with the president of advertising, Amy Reinhard, revealing that the service has surpassed 23 million global monthly active users at the Variety Entertainment Summit at CES 2024. This is a notable increase from the previously reported 15 million users a little over two months ago.
Reinhard highlighted the strong engagement levels among users on ad-supported plans, with 85% of them streaming on the platform for more than two hours per day. This suggests that the ad-supported model is resonating well with Netflix's audience.
Netflix runs 10, 20 and 60-second ads on the ad-based plan, which was launched in the United States, Canada, Australia, Brazil, France, Italy, Germany, Japan, Korea, Mexico, Spain and the U.K. in 2022.
The Basic With Ads plan is priced at $6.99 per month in the United States, which is less than half the cost of the Standard plan at $15.49 per month. This pricing strategy could be a key factor in attracting a broader audience to the ad-supported tier.
Ad-tier subscriptions reportedly account for approximately 30% of all new signups in the 12 countries where the platform has been launched.
The company’s ad-tech deal with Microsoft (MSFT - Free Report) as its global advertising technology and sales partner has played a pivotal role in the success of Netflix’s advertising strategy and technology infrastructure.
Netflix, Inc. Price and Consensus
Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote
NFLX’s Solid Content Portfolio to Drive Top-Line Growth
Netflix’s focus on originals, both movies and TV shows, has been a major growth driver. The Zacks Consensus Estimate for NFLX’s revenues for 2023 is pegged at $33.60 billion, indicating growth of 6.29% year over year. The consensus mark for earnings has increased by a penny over the past 30 days to $2.19 per share.
The company is scheduled to launch a bundle of comedy content like The Hollywood Bowl, The Greek Theatre, Dynasty Typewriter and others as part of its upcoming event, Netflix Is a Joke Fest.
Squid Game Season 2, Sweet Home Season 3, All Of Us Are Dead 2, Mercy For None, Everything Will Come True and The Bequeathed are among the shows lined up for K-drama fans in 2024.
Netflix intends to bring up more strategies that curtail its costs and, at the same time, benefit its users. Recently, it has been planning to reward binge-watchers with ad-free episodes to boost user retention. Users who view three episodes in a row will receive one ad-free episode.
Shares of this Zacks Rank #2 (Buy) company have returned 7.3% in the past six months compared with the Zacks Consumer Discretionary sector’s 2.8% rise, attributed to the success of its recently released content and a strong pipeline for 2024. This is expected to fend off competition from industry peers like Disney (DIS - Free Report) and Amazon (AMZN - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Netflix has outperformed Disney but underperformed Amazon. While shares of DIS have declined 1%, AMZN has returned 17.5% over the past six months.
Amazon is set to launch several content on its streaming platform, Amazon Prime Videos, including Role Play, Kevin James: Irregardless and more. Disney has plans to unveil several comedy content like Deadpool 3, Inside Out 2, Moana and many more.