Netflix's Ad-Supported Tier Fails To Grab Adequate Eyeballs, Analytics Firm Says - Netflix (NASDAQ:NFLX)

Antenna's data suggested a modest start for Netflix, Inc's NFLX $6.99-a-month ad-supported option.
The subscription analytics firm found 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 options.
Some 57% of subscribers to the ad-supported tier in the first month were people re-joining the service or signing up for the first time, while 43% downgraded from pricier plans, according to Antenna, the Wall Street Journal reports.
Also Read: Netflix's Rapid Advertising Tier Launch And Lack Luster Response Breeds Concern For This Analyst
Warner Bros. Discovery, Inc WBD-owned HBO Max, which launched its $9.99-a-month ad-supported plan in June 2021, had more robust early results, according to Antenna.
HBO Max's ad-supported plan accounted for 15% of new U.S. signups in the first month, and only 14% of the new customers were downgrading from its premium tier.
"Advertising for us is crawl, walk, run. We're definitely 'crawl' right now," said co-Chief Executive Ted Sarandos earlier this month at an investor conference.
Netflix's overall customer additions in the U.S. in November were lower than they were in October, Antenna found.
Antenna found it too early to predict the plan's growth trajectory.
For now, Netflix's ad tier resembled its basic, lowest-priced plan performance, which has typically been its least popular.
Sarandos said earlier this month that Netflix would likely launch multiple ad-supported service tiers over time.
Walt Disney Co DIS Disney+ launched its rival ad tier earlier this month as part of a price increase.
Price Action: NFLX shares traded higher by 1.11% at $291.40 on the last check Wednesday.

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