Reuters: Los AngelesAccording to executives speaking on Wednesday in a pitch to prospective advertisers, Netflix Inc.'s recently announced ad-supported tier reaches close to 5 million active customers per month.
As an alternative to ad-free plans that start at $10 per month, the pioneer of streaming video unveiled a $7 per month option with advertisements in 12 locations, including the United States, last November. As competition for online viewers grew, it was made with the intention of luring in additional clients and introducing a new revenue stream.
At the annual tradition known as the upfronts, where networks try to secure commercial contracts for forthcoming series, Netflix made its first pitch to advertisers on Wednesday. Other businesses, such as Walt Disney Co. and Comcast Corp., are battling for digital advertising budgets.
Netflix officials emphasized the company's diverse selection of programming, which includes the sci-fi hit "Stranger Things," the upcoming action movie sequel "Extraction 2," and the Korean drama "Squid Game."
Bela Bajaria, Netflix's chief content officer, asserted that "no other entertainment company aspires to create great movies and shows across so many genres in so many countries, and for such a broad, diverse audience."
Netflix's VP of global advertising, Jeremi Gorman, announced that there were now 5 million active members worldwide. All adult accounts used on a single account with ads are counted as monthly active users. Commercials do not appear on children's profiles.
By the end of March, there were 232.5 million paying Netflix users worldwide. Executives stated that they desired to collaborate with marketers to develop novel forms of advertising that were exclusive to digital services. According to co-Chief Executive Ted Sarandos, a 30-minute advertisement might spread over several days, with a plot developing each time a person watches a Netflix show.
Because people don't live on just one channel, you can't achieve that with linear TV, according to Sarandos. To avoid objections from the Writers Guild of America's strikers, Netflix decided to do the commercial presentation virtually instead of live in New York.
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