Netflix Basic with Ads Gets 1080p Upgrade in Canada, Up to 2 Streams

Netflix Plans

Netflix is making waves in Canada with its new ad-supported plan and paid password sharing initiative. In their Q1 2023 letter to shareholders released on Tuesday, the streaming giant highlighted the success of these endeavours in the Canadian market.

The ad-supported plan, which offers a more affordable option for subscribers, has been a hit. Engagement on this tier has exceeded expectations, and there has been minimal switching from standard and premium plans. Thanks to recent licensing deals, the ad-supported plan now offers roughly 95% content parity globally, including all the latest Netflix shows and movies.

Advertisers are also benefiting from this plan, with Netflix launching a programmatic private marketplace using Microsoft’s sales platform to offer more buying options for ad inventory. Partnerships with Integral Ad Science and Double Verify are now live, validating campaign engagement for ads viewership on Netflix.

The company is set to upgrade the ad-supported plan this month, starting in Canada and Spain today. These upgrades include 1080p video quality (up from 720p) and the ability for two concurrent streams in all 12 ad-supported markets. These enhancements are expected to attract even more consumers and boost engagement for existing and new subscribers.

Netflix’s paid sharing initiative has also seen positive results in Canada, as well as in New Zealand, Spain, and Portugal. The initiative aims to tackle widespread account sharing, which affects over 100 million households and hinders the company’s ability to invest in and improve its services for paying members.

Although the announcement initially led to cancellations in each market, growth has resumed as borrowers activate their own accounts and existing members add “extra member” accounts.

In Canada, the paid membership base has grown larger than before the launch of paid sharing, with revenue growth accelerating and outpacing growth in the US. This success in Canada bodes well for the company’s prospects in the United States, as Netflix continues to innovate and expand its offerings for subscribers around the world.

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