Netflix launched a Basic with Ads subscription tier back last month in an attempt to bring back subscribers. The tier, at a price point of $6.99, supported ads and also restricted some shows. Following its launch, many groups estimated it would make the streaming platform an additional $5.5 billion by 2027.
However, it appears customers aren't interested in a cheaper subscription tier. According to data analytics firm, Antenna, the Basic with Ads tier had the least new subscribers when it came out. Antenna revealed that only 9% of new Netflix subscribers opted for the Basic with Ads plan in its first month of existence.
The analytics firm further revealed that more than half of those who signed up for the tier were users who wanted to renew their subscription after it expired or those joining for the first time. A further 43% of this figure were existing subscribers who had downgraded their subscription from a pricier plan.
Netflix will find the 9% new subscriber rate disappointing given HBO Max's similar attempt in 2021 yielded 15% new subscribers in its first month, with only 14% of those subscribers downgrading from more expensive plans. However, the streaming company doesn't seem daunted by such a poor showing.
