Red Herring

THE BUSINESS OF TECHNOLOGY

  • Startups
  • Mobile
  • Enterprise
  • Consumer
  • Social
  • Events

Netflix to Introduce Ad-Tier Service This Year

October 14, 2022

Netflix has launched a new, cheaper streaming option which includes adverts, as it fights to maintain subscriber numbers. 

The plan will be rolled out in 12 countries including the U.S., the U.K., Canada, Mexico, and Australia. In the United States, the new offering will cost $6.99 a month. 

Netflix lost more than 1 million subscribers in the first half of 2022 and is about to announce an update on those figures next week. The company said it now has a “price and plan for every fan.” 

In the announcement, Netflix wrote: “While it’s still very early days, we’re pleased with the interest from both consumers and the advertising community — and couldn’t be more excited about what’s ahead. As we learn from and improve the experience, we expect to launch in more countries over time.”

Earlier this week, the JPMorgan analyst Doug Anmuth estimated Netflix could add 7.5 million users to its new ad tier in the U.S. and Canada in 2023, which would lead to $600 million in advertising revenue. By 2026, he Anmuth predicted the same region could drive $2.65 billion in advertising sales. 

Netflix also announced it would be partnering with Nielsen in the United States to measure its audience for advertisers. That will begin at some point in 2023. 

For many years Netflix ruled the streaming market, but has been challenged by traditional broadcasters entering the space over the years. The company has spent huge figures on creating its own shows and movies in an effort to maintain market share. 

Wall Street has welcomed the new ad tier offering since it was first mooted earlier in the year. However, it’s still been a difficult year for the streamer, shares are down 63% so far. 

  • 
  • 
  • 
  • 

Filed Under: Consumer, North America, Top Story

Related Articles

  • Meta Adds Nearly $100bn to Market Cap After Encouraging Q4 Earnings 
  • IBM Beats Revenue Estimates, Announces 3,900 Layoffs 
  • Ford Cuts 3,800 Jobs in Europe as Shift to Electric Vehicles Continues 

Widget Spacer

Top 100

The Red Herring Top 100 awards highlights the most exciting startups from Asia, Europe and the Americas.

Learn More

Upcoming Events

  • Top 100 Asia

  • Top 100 North America

  • Top 100 Europe

Widget Spacer

Guest Column

What is a Learning Management System?

Rouben David, of CourseForMe.com, outlines the features and benefits of

Widget Spacer

Subscribe

Subscribe now to get event news and updates delivered right to your inbox:

Widget Spacer

#DigitalHerring Tweet

My Tweets
  • About
  • Press & Media
  • Contact Us
Red Herring LinkedInRed Herring Facebook

Copyright © · Red Herring, Inc.

Copyright © 2025 · Red Herring Theme on Genesis Framework · WordPress · Log in