Netflix Inc NFLX shares were higher Wednesday after the company estimated that its ad-supported tier would reach 40 million global viewers in about a year.
Netflix estimates that its ad-supported version of its streaming platform will reach about 40 million viewers on a global basis by the third quarter of 2023, per a Wall Street Journal report citing a document the company shared with ad buyers.
As the company gears up to launch its lower cost, ad-supported streaming service, executives from Netflix and advertising partner Microsoft Corp MSFT began meeting with ad buyers in recent weeks.
Netflix told potential ad buyers that it expects to have 4.4 million unique viewers globally by the end of 2022, with 1.1 million coming from the U.S. The company reportedly estimated that it would grow to over 40 million unique viewers by the third quarter of 2023, with 13.3 million coming from the U.S.
It's important to note that the company's projections are based on viewers not subscribers.
From Last Month: Here's How Netflix' Ad-Supported Subscription Plan Will Work: Launch Timing, Potential Pricing And More
NFLX Price Action: Netflix has a 52-week high of $609.99 and a 52-week low of $162.71.
The stock closed up 2.75% at $224.12 Wednesday afternoon.
Photo: Tumisu from Pixabay.
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