Netflix has reported that its new ad-supported subscription plan has attracted five million monthly active users in the six months since its launch. Priced at $7 per month, which is less than half the cost of its most popular offering, the plan aims to stimulate growth in a market where acquiring new streaming customers has been challenging. It should be noted that the monthly users mentioned may not all be subscribers, as some individuals could be sharing plans.
The announcement is expected to alleviate concerns that the ad-supported option had a slow start. Netflix had 233 million paying members globally by the end of the first quarter. This information was disclosed during the company’s inaugural participation in the upfronts, an annual event where TV networks present their line-ups to media buyers in New York.
Initially planning to hold the event at its Paris theatre, Netflix moved it online due to a strike by screenwriters who threatened to picket the venue. This development marked an unusual week for the industry, as the upfronts faced disruption from striking TV and film writers. The writers staged a protest on May 2, with chants and drumming outside Walt Disney’s presentation at the Javits Centre. Consequently, many actors chose not to cross the picket lines, resulting in executives reading from teleprompters before audiences comprising ad buyers and journalists.
The strike has also raised concerns about the networks’ ability to deliver some of the shows they had promoted by the start of the new season in September. Amidst the turmoil, Comcast’s NBCUniversal commenced its event with a musical number featuring Ted, an animated Teddy bear portrayed by Seth MacFarlane, who will have his own show on the Peacock streaming service. However, the company acknowledged the departure of Linda Yaccarino, it’s head of ad sales, who left to become the CEO of Twitter. Mark Lazarus, NBCUniversal’s TV chief, wished her well on stage while emphasizing the strength and spirit of the company.
On the other hand, Fox relied on its news, sports, and reality TV personalities to compensate for the absence of actors during its event. The broadcast network announced six new shows for the upcoming season, comprising two dramas, two animated series, and two game shows. Meanwhile, Disney’s ABC heavily emphasized its reality TV plans in its autumn schedule announcement, featuring returning shows like Dancing with the Stars and Bachelor in Paradise.
Warner Bros Discovery also promoted new unscripted programs, including a travel show starring comedian Conan O’Brien and a series by actor Robert Downey Jr., focused on restoring classic cars. Throughout the week, all the companies highlighted their streaming businesses. NBCUniversal, for instance, revealed that it would exclusively stream a National Football League wild-card playoff game on its Peacock service in January, a first for the league. Additionally, Disney enlisted YouTube sports commentator Pat McAfee, who will host a show on the company’s ESPN cable TV and online networks later this year.
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