With the intention of returning to growth after losing ground to other platforms such as Disney+, Netflix is directing efforts towards an advertising plan. The company plans to launch its cheaper, ad-supported version in early 2023, reaching more than 40 million people in the process, including Brazilians. That’s what she stated in her projections for future partners.
Recently, executives at Netflix and its advertising partner Microsoft reached out to potential ad buyers.
During the presentation, the companies projected a promising future, in which the numbers of subscribers and viewers would increase exponentially. With this, brands would be more seen and remembered by people.
In initial projections, the company expects to gain 4.4 million new users worldwide by the end of 2022. 1.1 million would come from the US alone, while the rest would be distributed across other countries. The biggest expectation, however, is the growth of 44 million until the third quarter of 2023. Brazil is in this account, alongside countries like France, Canada and Australia.
Importantly, these numbers represent unique viewers and non-subscribers. Because Netflix understands that within a home, there is one more subscription in force being used by two or more people.
Netflix has yet to hammer out how the new cheaper plan will be introduced to customers. She is constantly evaluating the market, so any projections may change in the future.
A company spokesperson told the Wall Street Journal:
We are still in the early days deciding how to launch a lower ad-supported price tier and no decision has been made.
Therefore, we are still waiting for official information, but some details seem to have leaked. There are reports that the price of this model would be up to 50% cheaper than the standard, from $15.49 to somewhere between $7 or $9.
Also, advertising time would be four minutes per hour on the package.