Netflix’s Basic plan with ads is starting to catch on with views according to a report from Bloomberg citing internal data showing that after two months, more than one million users have signed up for Netflix Basic with ads.
Those numbers equate to a growth in the user base grew of more than 500% in the first month from its launch and then another 50% in its second month, says Bloomberg, which added “Netflix has also fulfilled its forecasted deliveries to advertisers, according to people familiar with the deals.”
Analysts had feared the non-ad Netflix tier might cause existing customers to downgrade to the free option, but that doesn’t yet seem to be the case. Netflix had 231 million paying subscribers as of the end of last year.
According to reports, the majority of people signing up for the ad tier are new customers or lapsed customers. The ad tier now accounts for about 20% of new sign-ups in the US, per analytics firm Antenna.