New research from Antenna suggests that the relatively new Netflix ad supported tier is getting off to a slow start, with only 9% of new signups in November of 2022 subscribing to the Netflix Basic with Ads tier.
The subscription analytics firm Antenna also found, however, that the tier is not, as yet, causing a great deal of cannibalization of Netflix’s existing subs. Only 0.1% of Netflix’s U.S. subs switched to the ad-supported tier in November, according to Antenna.
Netflix only launched the new tier on November 3 so the data is only a very early indication of consumer reaction to the offering.
In a blog post, Jonathan Carson, co-founder and CEO of the company noted that “Antenna’s data suggests a modest start. Antenna finds that 9% of Netflix Sign-ups in the U.S. in November were to the “Basic with Ads” plan, making it the least popular of their plan options. In addition to the Basic with Ads Subscribers who signed-up for Netflix, Antenna observed 0.1% of Netflix’s existing U.S. Subscribers switching to the Basic with Ads plan in November.”
Carson added that “HBO Max saw a mild pickup when it first launched its ad-supported option in June 2021. As Antenna previously reported, 15% of HBO’s U.S. Sign-ups were for HBO Max With Ads in its launch month.
In addition, Antenna found that 0.2% of existing U.S. HBO Max Subscribers switched to the ad-supported plan in its launch month, about double the Netflix switching rate, Carson wrote. “The popularity of the HBO Max With Ads plan did increase over time, accounting for as many as nearly one in three Sign-ups over the course of its first year in the market,” he explained. “Currently, Antenna estimates that 21% of HBO Max Subscribers are to the ad-supported plan.
Data from the Antenna post was first published in the Wall Street Journal.
More information on this study and other insights from Antenna is available here.
