Ben Shepherd, in his newsletter Signal, this week looks at Netflix ad growth, Amazon coming for cable, NFL domination of US TV ratings continues.
Netflix ad tier has 23m global subscribers
What’s new:
Netflix announced at CES that their ad tier has 23m global subscribers, up from the 15 million they claimed were on the service in November.
Why it matters:
Netflix with ads growth has been slower than many expected, but 23m demonstrates that scale is coming and the 8m adds between November and January show an uptick in growth. Whilst 23m represents less than 10% of total users, if that level of growth maintained across the next 3 years Netflix with ads could have close to 100m households by the end of 2026
Marketer implication:
Even with small volumes Netflix with ads theoretically can have value for marketers if it can reach low/no TV viewers which are high Netflix consumers (hence hard to reach with video elsewhere). Scale is not everything (although it definitely is something) in the video world, and if Netflix can frame a convincing argument around this smaller set of users (i.e. hard to reach elsewhere, more affluent, influential, some sort of hard data around any other Netflix and/or content associations) then expect this business unit to be a continued material revenue contributor in the future.
Read the rest of Signal HERE
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