Netflix Shares Fall due to WS Journal Reports
2022.12.20 08:45
Netflix Shares Fall due to WS Journal Reports
Budrigannews.com – (NASDAQ:) Netflix After the Wall Street Journal reported that the streaming company’s new ad-supported plan was the least popular tier in November, the stock is down 3% in pre-open Tuesday.
According to data from the analytics company Antenna, the ad-tier option reportedly only accounted for 9% of new Netflix sign-ups in the United States. Users re-joining the service or signing up for the first time made up 57% of those who chose an ad-supported tier, while 43% downgraded from more expensive plans.
According to Antenna, the ad-tier plan was used by 0.2% of Netflix subscribers in the United States by the end of the month. However, Netflix informed WSJ that the data from Antenna is incorrect.
She stated, “It’s still very early days for our ad-supported tier, but we’re pleased with its launch and engagement, as well as the eagerness of advertisers to partner with Netflix.”
Additionally, the information from Antenna revealed that Warner Bros. Discovery (NASDAQ:) its ad-supported plan, which launched earlier this year for $9.99 per month, received better reviews. In addition, Netflix’s overall customer additions were, according to the analytics company, higher in October than in November.
“We advertise by crawling, walking, and running. In the beginning of this month, co-chief executive officer Ted Sarandos stated, “We’re definitely “crawl” right now.”
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Last week, analysts at Jefferies said that Netflix might not grow its subscribers in the fourth quarter because of weakness in international markets.
