There is more and more streaming services. Premium Video. Netflix. OKS. Channel Play. Disney+. Paramount+. Etc. You have to pay for a new subscription with each offer. Faced with this increasingly abundant offer, households have to make choices. Some will choose to walk out of the offer to adopt someone else. Others will benefit from combined promotions. However, the number of those who will increase the publication budget is very small.
Unless there are subscriptions ” low cost » was developed to attract new users. That’s exactly why Netflix launched its ad-supported subscription in November 2022. The owner accesses the same content. But there are occasional ads. price to be paid in return decreased from 8.99 euros to 5.99 euros. A month from now, it’s time to evaluate this initiative. And unfortunately not good.
Netflix’s advertised offer fails to attract new customers
The American newspaper The Wall Street Journal published the results of a study by the Antenna Institute, which specializes in the analysis of subscription television services. According to this document, Netflix’s low-cost offer is only convincing. 9% of new subscribers in the United States. This means that 91% of registrations are for ad-free standard offers. By comparison, HBO Max’s advertising offering convinced 15% of new subscribers. This is better.
Another interesting indicator: the percentage of Netflix subscribers who dropped their offer to adopt what was advertised. That’s what 43% of customers subscribe to Netflix’s low-cost offer.. This is much more than the 14% recorded by HBO Max. This metric is important because these subscribers bring less money to the streaming service. If HBO Max has managed to convince “premium” customers not to switch to a low-cost subscription, that’s not the case with Netflix.
Therefore, the remaining 57% are new customers who have never subscribed to Netflix or old customers who have returned because of the price. At the end of November, 0.2% of all Netflix subscribers subscribed to the low-cost offernew entrants, veterans of the service, or users returning after ending offers.
Source : wall street diary
