2022 was not Netflix’s year. Despite the setbacks, however, it seems their decision to add an ad-supported tier to their subscription packages could be paying off in spades. With over 5M active monthly users for the new tier, it was a critical focus of their first TV Upfront presentation- and seems to have won Wall Street approval, too. Brandon Blake, entertainment lawyer Los Angeles with Blake & Wang P.A, has all the news.
Stock Price Jump
After their Upfronts presentation, despite a change to a virtual event at the last minute, Netflix stock jumped a rather mighty 9%. It closed at $371.29 on the back of supportive subscriber numbers and major growth for the new tier. Of course, it’s worth noting that those numbers are 5M active monthly accounts, not actual subscriber numbers- but then, Netflix has never been comfortable discussing its subscriber base in too much data-driven detail. And no doubt advertisers looking for a solid partner will be taking note regardless.
Other Positive Metrics
The news that over 25% of new Netflix subscriptions, with a median age of 34-prime targets for ad marketing- are going to the cheaper ad-supported tier will be cheering news for Wall Street, too. Especially now the era of constantly booming subscription numbers is well and truly bust. That’s a lot of traction to gain in only half a year of availability, especially with a notoriously rocky start.
On the ad member side, we’ve heard that it has ‘more than doubled’ this year alone. Interestingly, Netflix has managed this off the back of a programming lineup with zero live marquee sports programming, too- something that has become a key hope for subscription increases on other streaming platforms.
While there’s still a long way to go before Netflix recovers the peak of its share price, let alone public goodwill, it seems they launched their ad-supported tier at the perfect time for the market. And in a year riddled with advertising and subscription downturns both, that- and Netflix’s notoriety as one of the few streamers operating in the black- is news worth celebrating.
Film and Television 