Netflix’s ad-supported streaming subscription has reached nearly 5 million monthly active users worldwide, with an average age of 34, six months after launch. This was announced during a virtual presentation by Jeremi Gorman, the president of Netflix for international advertising, writes The Hollywood Reporter.
The company noted that since the beginning of the year, the number of users of subscriptions with advertising has more than doubled. According to service co-founder Greg Peters, more than a quarter of subscribers in countries where an ad-supported plan is available choose it, with engagement rates similar to those of an ad-free plan.
“The signals are promising: engagement on our ads plan is similar to our comparable non-ads plans,” Peters said. “That’s critical because it all starts and ends with consumers.”
Indeed, Netflix still dominates most streaming service rankings and claims that users watch it longer than its competitors.
“It’s why, despite all the competition, Netflix is the most popular streaming service today,” Peters added.
He also gave an example of the “Netflix effect”, which helped push old songs to the top of the charts after appearing on the show and make niche sports popular.
For her part, the head of the content department of Netflix, Bela Bajaria, explained the popularity of the streaming service by the fact that it gives the viewer something that will really satisfy them.
“To super-serve our members we have to focus on quality, with the understanding that quality, like beauty, is in the eye of the beholder,” she added.
Netflix also introduced new sponsorship options, including the ability to sponsor the presentation of series at launch, as well as coordinating sponsorships with holidays or brand moments. And the Top 10 option will give advertisers guaranteed placement in the top 10 Netflix movie lists in each country.
Among other things, starting in Q4, clients will be able to use Nielsen Digital Ad Ratings to measure the reach of their campaigns. The company also announced a deal with data analytics company EDO to measure engagement. Netflix has promised future development in advertising and innovation.
We will remind that Netflix is preparing to close one of its businesses as soon as this fall. It’s DVD rentals (ie DVD.com). The company will send the last discs with films on September 29. It launched such a service 25 years ago, sending the movie Beetlejuice in 1998.