After four months of availability, Netflix’s ad tier has reportedly hit a notable milestone: 1 million subscribers. The company also has supposedly met its goals for deliveries to advertisers that are supporting this new option for the streaming service.
Bloomberg added that the ad tier isn’t cannibalizing previous Netflix subscribers. In other words, customers aren’t downgrading to the cheaper option; instead, new and returning members are opting for the ad tier. In fact, the report points out that supposedly 20 percent of new signups are picking Netflix with ads.
This lines up with Netflix co-CEO Greg Peters comments from January, who said the ad tier was showing “solid” early results. Company executives stated they knew Hulu was the main competitor in the ad-based streaming space, and they plan on catching up, just not in a single year.
The $7 ad tier might see higher uptake as Netflix cracks down on password-sharing. That’s no guarantee, but Bloomberg says analysts could see the cheaper option bringing in 15 million to 30 million customers in the US over time.
For more, check out everything you need to know about Netflix with ads.
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