Netflix expects 40 million viewers for ad-supported version by Q3 2023

By Ayushi Garg  | Date: September 19, 2022

Netflix expects 40 million viewers for ad-supported version by Q3 2023

Netflix Inc. has reportedly estimated that an ad-supported version of its streaming service would reach approximately 40 million viewers worldwide by the 3rd quarter of 2023.

Executives from Netflix and its advertisement partner, Microsoft Corp., have been meeting with ad buyers aiming to secure deals ahead of the company's planned launch later this year.

Additionally, sources stated that Netflix aims to have 4.4 million unique viewers worldwide by the end of 2022, with 1.1 million streaming from the United States. Furthermore, the company predicted that by the third quarter of 2023, there would be over 40 million monthly active viewers, with 13.3 million from the United States.

It is worth mentioning that Netflix's advertising forecasts include a dozen of launch regions, including Mexico, the United Kingdom, France, Japan, Germany, Korea, Spain, Brazil, Italy, Australia, and Canada.

Since more than one person in a paying household is likely to be able to access the service, the figure the company supplied, "projected unique viewers," is anticipated to be larger than the number of subscribers for the ad-supported Netflix plan.

Notably, the streaming behemoth is currently debating how to create a lower-cost, ad-supported tier as well as evaluating the potential demand for the ad-supported plan, and its projections for subscribers and viewers that may vary over time.

Netflix, which has 220 million customers, is banking that a lower-cost, ad-supported plan would attract new users and increase income as the firm faces increased competition and a maturing U.S. market. Its entry into advertising is a significant shift for a company that had previously stated that it would remain ad-free and has contradicted its own words.

However, during the June quarter, the streaming juggernaut lost roughly one million customers. It joins competitors such as HBO Max and Disney+ in offering or preparing to offer ad-supported services.

Despite telling some ad buyers that the new ad-supported option will debut on November 1, Netflix stated in a letter to shareholders that it would likely begin in early 2023. Moreover, the company intends to charge brands premium prices to promote on its platform.

Source Credit:

https://www.wsj.com/articles/netflix-estimates-ad-supported-tier-will-reach-40-million-viewers-by-late-2023-11663175382?mod=tech_lead_pos10

About Author

Ayushi Garg     ibmag.com

Ayushi Garg

Currently working as an associate content writer, Ayushi pens down insightful articles for several websites. She began her profession by taking classes in digital marketing to broaden her skills. Given her passion for writing, she took up several freelancing projects ...

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