The Drum |  Netflix refunds advertisers as ad-supported level underperforms in Australia

The Drum | Netflix refunds advertisers as ad-supported level underperforms in Australia

Netflix’s Australian advertising tier underperformed in the first three months of operation, with the streaming giant offering refunds to advertisers.


Netflix ad-supported subscription level failed to meet expectations in Australia / Netflix

Netflix is ‚Äč‚Äčreimbursing Australian advertisers after failing to meet expected viewership figures for ad subscriptions.

Media reports suggest that Netflix’s Basic with Ads subscription tier, which launched in November, underperformed by up to 70% in the first three months of operation.

The disappointing performance was attributed to lower-than-expected subscriptions, a lack of inventory, and the absence of an established product.

The launch of the globally supported by advertising offered consumers a $4 savings on the streaming giant’s basic package in exchange for advertising. The Basic with Ads plan is priced at $6.99, while the Basic plan is only $10.99.

However, it’s not just Australia where the ad subscription model has fallen short of expectations. Media reports from last year suggested the offering got off to a slow start globally due to a lack of inventory and subscribers.

Netflix announced the introduction of advertising level last yearFollowing increased competition in the streaming content market, both Disney+ and Paramount+ are expected to launch ad-supported packages.

However, media pundits say the service is starting to kick off and forecasts for the next few months are improving. Subscriber numbers are also expected to spike as Netflix rolls out anti-password sharing technology that will prevent multiple users from sharing accounts.

Netflix launched the technology in New Zealand last week, with plans to roll it out to Australia “in the coming months”.

After years of denying that it would introduce advertising on the platform, Netflix was forced to rethink its strategy last year, following increased competition from Disney+ and Paramount+. Disney+ launched its ad tier in the US in December and is expected to launch in other markets this year.

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