Netflix estimates that its upcoming ad-supported subscription tier will reportedly reach roughly 40 million unique viewers globally by this time next year.
The information comes via The Wall Street Journal, after the publication reviewed a Netflix document that the streaming service shared with ad buyers.
Microsoft, which is Netflix’s global advertising technology and sales partner, and Netflix sat down with ad buyers in recent weeks with the intention to lock deals before the new subscription tier’s release later this year. In these meetings, Netflix told ad buyers that it expects to have 4.4 million unique viewers under the new tier by the end of 2022, with the number growing to 40 million by Q3, 2023. Out of the 40 million, it expects 13.3 million viewers to be from the U.S.
It’s worth noting that 40 million unique users don’t mean that Netflix projects to gain 40 million new subscribers via the ad-supported tier, since more than one person per household would be able to use the service per subscription.
“We are still in the early days of deciding how to launch a lower priced, ad supported tier and no decisions have been made,” a Netflix spokeswoman said in a statement given to The Wall Street Journal.
From what we know so far, Netflix is targeting a $7-$9 USD monthly price for the ad-supported tier, or roughly $9 to $11 CAD.
Rumour has it the company is aiming for a November 1st launch to get its ad tier out ahead of Disney+.
Netflix first hinted at a new ad-supported tier in May, after it announced that it lost 200,000 subscribers in Q1, its first quarterly decrease in over ten years. It is currently unknown when the new ad-supported tier will launch, though rumours point to Q4 2022.
Source: The Wall Street Journal