Netflix says subscriptions for its ad-tier service have TRIPLED in five months ... trends now
Netflix has seen a massive jump in subscribes of its ad-based subscription with 15 million users now willing to bear a few commercials to save some bucks.
The streaming platform celebrated the one-year anniversary of their ad-tier option with a celebratory blog post - where they revealed their subscribers have grown exponentially since they rolled out the more affordable option.
Amy Reinhard, the newly appointed head of advertising at the $180-billion-company, announced Netflix has 15 million global monthly active users on the tier - up from the 5 million they boasted in May.
The three-fold increase over just five months suggested that users are more open to the platform - which first began streaming in 2007 - now that there is a more affordable option.
The news has been welcomed on Wall Street with Netflix stock up more than a percent by midday Wednesday - now sitting at $416.22.
Netflix introduced its ad-supported plan one year ago and has already seen a huge increase in subscribers
There are now 15 million users on the ad-based tier compared to just 5 million in May. The company made the announcement in celebrating a year since the tier was offered
In an earnings report, the streaming giant revealed its ad-supported offer was gaining popularity with the number of members increasing nearly 70 percent in the quarter
'We have built an incredible foundation, focusing on areas advertisers told us matter most, all while delivering unmissable entertainment at an unbeatable value,' Reinhard said
Compared to Netflix's premium plan, which is $22.99 a month, and the standard plan, which is $15.49 a month - the 'standard with ads' option is just $6.99 a month.
The ad-tier plan includes standard features - such as full HD and two-device watching - but with around four minutes of ads per hour of watch time.
Amy Reinhard (pictured), the newly appointed head of advertising at the $180-billion-company, announced Netflix has 15 million global monthly active users on the tier - up from the 5 million they boasted in May
The standard option allows subscribers to enjoy unlimited movies, TV shows and mobile games ad-free in full HD on two supported devices - with the option to add one extra member who doesn't live in the same household.
Netflix's premium plan offers all of the same perks with four supported devices at a time, ultra HD, downloads on up to six devices at a time, Netflix spatial audio and the option to add two extra member swho don't live with the primary