Netflix has announced its Q2 earnings, detailing more about its growing advertising business and future plans for Canada.
“We’re making steady progress scaling our ads business. Ads tier membership grew 34% quarter on quarter, and we’re building an in-house ad tech platform that we’ll test in Canada in 2024 and launch more broadly in 2025,” Netflix stated in its earnings report.
Netflix reported revenue of $9.56 billion USD, marking a 16.5% increase year-over-year, with a net income of $2.15 billion. Total global paid memberships reached 277.65 million.
Advertising looks to be the ongoing next frontier for Netflix and its ad-supported tiers. “Ads fulfill two important strategic priorities for Netflix: first they enable us to offer lower prices to consumers; and second, they create an additional revenue and profit stream for the business,” the report noted. Since its launch 18 months ago, the ads tier now accounts for over 45% of all signups in markets where it is available.
The new ad platform aims to offer advertisers new purchasing methods, insights, and impact measurement tools. Globally, the ad-supported membership tier saw a 34% sequential increase in Q2. So it looks like people are willing to watch ads for paying less for a Netflix membership, eh?
The phasing out of the Basic plan in the UK and Canada, which will also extend to the US and France, has contributed to the growth of the ads tier, said Netflix. Priced at $5.99 per month in Canada, the ad-supported plan includes two streams, high definition, and download for two devices.
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It’s funny, cable TV started with just a monthly subscription, then ads came, and then became increasingly aggressive. Netflix and Amazon Prime is the new cable TV. Well, at least there’s a choice of no ads with higher tier.
Ya, you beat me to it. What's old is new again.
Ads have started to be like catnip for these companies, security and customer experience be damned.
I can see netflix and disney using more ads in Canada to pay for the absurd tax the feds have laid on them. Either that or we'll somehow get less services. Maybe some 'Canadian content' – that will be just as subpar as usual.
BUt it's okay. The CBC just laid off even more staff while the CEO made even more bonuses this year.
Thanks Trudeau
Riiiiight. This is somehow Trudeaus fault. Of course it is.