- Antenna's data suggested a modest start for Netflix, Inc's NFLX $6.99-a-month ad-supported option.
- The subscription analytics firm found that 9% of Netflix Sign-ups in the U.S. in November were to the "Basic with Ads" plan, making it the least popular of their options.
- Some 57% of subscribers to the ad-supported tier in the first month were people re-joining the service or signing up for the first time, while 43% downgraded from pricier plans, according to Antenna, the Wall Street Journal reports.
- Also Read: Netflix's Rapid Advertising Tier Launch And Lack Luster Response Breeds Concern For This Analyst
- Warner Bros. Discovery, Inc WBD-owned HBO Max, which launched its $9.99-a-month ad-supported plan in June 2021, had more robust early results, according to Antenna.
- HBO Max's ad-supported plan accounted for 15% of new U.S. signups in the first month, and only 14% of the new customers were downgrading from its premium tier.
- "Advertising for us is crawl, walk, run. We're definitely 'crawl' right now," said co-Chief Executive Ted Sarandos earlier this month at an investor conference.
- Netflix's overall customer additions in the U.S. in November were lower than they were in October, Antenna found.
- Antenna found it too early to predict the plan's growth trajectory.
- For now, Netflix's ad tier resembled its basic, lowest-priced plan performance, which has typically been its least popular.
- Sarandos said earlier this month that Netflix would likely launch multiple ad-supported service tiers over time.
- Walt Disney Co DIS Disney+ launched its rival ad tier earlier this month as part of a price increase.
- Price Action: NFLX shares traded higher by 1.11% at $291.40 on the last check Wednesday.
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