According to Netflix’s second-quarter earnings report, the company added over 8 million paid members globally since April. That massive spike has lifted the total paid subscribers worldwide from 238 million to nearly a whopping 278 million – or about 16.5 percent growth, year-over-year.
More About Netflix Gaining 8 Million Global Subscribers
Ad-supported tier subscriptions, meanwhile, record a 34 percent gain in subs from Q1 to Q2 of 2024. Thus, this increase is in addition to Netflix’s continued ramp-up of its ad-supported plan that carries lower price points than those for the ad-free tiers. Netflix dropped its most affordable ad-free “Basic” subscription tier late last year. This transition kicked off in July when the company started alerting customers from both the UK and Canada that they would now have to switch plans as a part of this change.
The US was charging $9.99 per month for a Basic plan, but now Americans will be able to sign up with the lower-cost ad-free alternative set at $15.49 per month instead. Netflix had at first grandfathered existing Basic plan subscribers to keep their subscriptions, but has been slowly removing this option.
This tier costs $6.99 per month and serves up between four to five minutes of ads hourly. Running before and during TV series and movies, these 15 to 30-second ads are short with a quick call-to-action. Netflix is also planning to test a new proprietary ad tech platform in Canada and expects it will provide widespread support by 2025.
From a financial standpoint, Netflix has reported 17 percent growth in revenue year-over-year, and they are projecting a full year of 14%-15% growth through the end of this decade. It’s also expecting its ad-supported membership numbers to keep growing and is planning for advertising revenue to become a more meaningful part of the business as years pass by. This comes after Netflix has been shifting its strategy in favor of diversifying its revenue and making itself more fungible given current conditions.
FAQs
How much did Netflix’s ad-supported plan increase in subscriptions?
Subscriptions to Netflix’s ad-supported plan grew by 34 percent from the first to the second quarter of 2024.
What is the new cost for Netflix’s cheapest ad-free plan in the US?
The new cheapest ad-free plan in the US is priced at $15.49 per month.
