As the year draws to a close, Netflix’s stock has fallen about 50%, trading at around $290. However, streamers are pursuing some interesting strategies that show promise in 2023 and beyond. Netflix introduced an ad-supported tier at $6.99 per month in early November 2022. Titled Basics with Ads, the plan is said to be aimed at people who don’t mind the marketing message if it means giving them access to most of Netflix’s series and movies.
Netflix (NFLX 3.39%) is off to a strong start to 2022. The streaming company’s share price hovered around $590, partly due to a surge in signups during the worst of the pandemic. But just a few weeks later, investors began pulling away from the company, and the transition became a spill of sorts when the streamer announced in April 2022 that he had lost subscribers for the first time in over a decade.
The streamer expects to attract around 40 million customers by the end of 2023, according to a report from. Netflix co-CEO Reed Hastings expressed regret over his previous opposition to such a product at his DealBook Summit in The Times of New York just weeks after the ad-supported service launched. Did. “[Disney’s] Hulu has really proven that it can do [ad-supported streaming] at scale and offer low prices to consumers,” Hastings said.
That’s reportedly why Netflix is refunding payments for unsold inventory to its advertising partners.
“I wish it had turned around a few years ago, but it will catch up. In a few years, you won’t remember when you started.” Hastings sounds optimistic about the long-term future of Netflix’s ad-based service, but there are some signs of an unconvincing debut. According to multiple Digiday sources, Basic with Ads achieved nearly 80% of its initial projected viewership.