Is Netflix’s ad tier is working?
In its second month of availability, Netflix’s ad tier has reached about 1 million monthly active users in the US. The $6.99/month plan launched in November 2022 with about 4-5 minutes of ads per hour of content. The 1 million active users are not subscribers, however, as this includes multiple people using one account. Importantly, many of those signing up for the ad-supported option are not people downgrading their subscription, but rather are new or lapsed consumers.
The NPD Take:
- While a big number, it’s hard to say if it’s a good number. The real success will come through the volume of subscriber growth and ad revenues; numbers the public does not yet know.
Apple TV+ will air MLB games for subscribers
Apple TV+ is finding new ways to grow its subscriber base. The SVOD platform will be airing Friday Night Baseball for its subscribers only, a change from last year’s season when some of the games were available for free. A variety of MLB content will be available on the platform this season, which begins on April 7th, including recap shows, condensed games, and more. The company is also expected to put more original movies in theaters this year, a change from previous releases that have had limited theatrical runs or were only released on Apple TV+. The expected spend for this new strategy is around $1 billion.
The NPD Take
- Streamers airing sports content is becoming more popular, but how many subscriptions will we need to have to watch it all? Apple TV+ airing MLB games only to subscribers will likely bring new subscribers in, but we will see how long those subscribers stick around after the season is over.