Maya Robertson
Streaming giant Netflix expects its upcoming ad-supported subscription plan to have more than 40 million viewers by Q3 2023.
As reported by the Wall Street Journal, Netflix and its ad partner Microsoft’s executives recently held a meeting with ad buyers to discuss the projections of its ad-supported plan, which will reportedly cost around $7 per month.
According to a document of the meeting which was reviewed by the WSJ, Netflix forecasts its new tier to lure 4.4 million unique viewers by the end of this year, of which 1.1 million will be coming from the United States. It also expects it to surpass 40 million viewers worldwide by the third quarter of 2023, with 13.3 million from the US.
The countries covered in the estimations include Canada, France, Korea, Japan, Spain, Mexico, Brazil, Germany, the United Kingdom, Australia and Italy.
In addition, the company expects the number of unique viewers to be higher than the number of subscribers, as more than one person in a paying household will probably be using the service.
A spokesperson for the company said, “We are still in the early days of deciding how to launch a lower priced, ad supported tier and no decisions have been made.”
Netflix first announced its partnership with Microsoft for the tier back in July, just before revealing that it lost nearly 1 million subscribers in the second quarter. The company now aims to keep its existing customers and bring in new ones with the upcoming tier which will be cheaper than its Standard plan that costs $15.99 per month.
Meanwhile, Netflix is not the only streaming company working on ad-supported subscriptions. Similar plans have been unveiled by Disney, which recently raised its prices after surpassing Netflix in subscriber number, and HBO Max & Discovery which will merge into a single platform in 2023.
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