Netflix Hopes Ad-Tier Is Still Better Than Watching Cable

Netflix is hoping customers see its advertising-supported subscription tier as still better than cable. Co-CEO Greg Peters says in a video with 1Q earnings that greater awareness of the quality of the company’s ad experience should help boost subscriptions. He says that the linear TV ad experience is still “quite poor” in many places around the world. He also mentions low price and tools like integrated payments as drivers of growth for the ad tier. Ads membership grew 65% sequentially in 1Q, keeping pace with the quarter-on-quarter changes in the previous two reporting periods. Netflix shares are down 3.9% to $587.22 after-hours.

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