Netflix Ended The Year Almost Doubling Wall Street Expectations
Slow start for the new ad-supported tier, chosen by 13% of the subscribers
All good on Netflix’s front. After some struggle at the beginning of 2022, the streaming giant ended the year with good results. Netflix released its fourth-quarter earnings report exceeding financial projections. The company increased its subscriber counts by 7,66 million, easily surpassing the expectations of Wall Street of 4,57 million. Globally, Netflix wound up in 2022 with 230.75 million subscribers, a year-over-year increase of 4%.
13% of its subscribers are from the new ad-supported tier the Californian company started in November to attract new subscribers and advertisers while limiting how many people trade down from Netflix’s existing, higher-priced plans.
The strategy partially worked, even if the ad-supported tier had a slow start. The basic plan with Ads was, in fact, Netflix’s least popular deck, with the rest of the respondents on its more expensive Standard (34%), Premium (27%), and Basic (25%) plans.
Some analysts have said it needs a couple of years for Netflix to amass enough viewers to build a meaningful advertising business. That is why Netflix lets advertisers take their money back after some ad campaigns fell far short of their viewers’ targets. Some of them hit around 70% of their estimated targets while others hit as little as half that, Insider writes.
The company also announced it has plans to enforce password-sharing rules “more broadly” toward the end of the first quarter of 2023. Netflix expects some “cancel reaction” in each market, but the long-term benefits of people paying for additional accounts will result in “improved overall revenue.”
Sources: The Business Insider, Forbes, The Verge
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Slow start for the new ad-supported tier, chosen by 13% of the subscribers
All good on Netflix’s front. After some struggle at the beginning of 2022, the streaming giant ended the year with good results. Netflix released its fourth-quarter earnings report exceeding financial projections. The company increased its subscriber counts by 7,66 million, easily surpassing the expectations of Wall Street of 4,57 million. Globally, Netflix wound up in 2022 with 230.75 million subscribers, a year-over-year increase of 4%.
13% of its subscribers are from the new ad-supported tier the Californian company started in November to attract new subscribers and advertisers while limiting how many people trade down from Netflix’s existing, higher-priced plans.
The strategy partially worked, even if the ad-supported tier had a slow start. The basic plan with Ads was, in fact, Netflix’s least popular deck, with the rest of the respondents on its more expensive Standard (34%), Premium (27%), and Basic (25%) plans.
Some analysts have said it needs a couple of years for Netflix to amass enough viewers to build a meaningful advertising business. That is why Netflix lets advertisers take their money back after some ad campaigns fell far short of their viewers’ targets. Some of them hit around 70% of their estimated targets while others hit as little as half that, Insider writes.
The company also announced it has plans to enforce password-sharing rules “more broadly” toward the end of the first quarter of 2023. Netflix expects some “cancel reaction” in each market, but the long-term benefits of people paying for additional accounts will result in “improved overall revenue.”
Sources: The Business Insider, Forbes, The Verge
Share:
Netflix, Disney+, and HBO Max Prices Continue to RiseSubmissions Open for Tax Credit Session for Foreign Works
