Netflix’s ad-supported tier reaches 23 million subscribers

The Street

TheStreet’s J.D. Durkin brings you the biggest news of the day, including a fresh batch of inflation data and Netflix users continue to flock to its ad-support tier.

Transcript

00:00 I'm JD Durkin reporting from the New York Stock Exchange and here's a look at what we

00:03 are watching on the street today.

00:06 Investors are reacting to a hotter than expected inflation report.

00:10 Consumer prices rose .3% for the month of December, pushing the annual rate to 3.4%.

00:16 It marks an increase from the 3.1% rate back in November and it's still well above the

00:20 central bank's 2% inflation target.

00:24 Wall Street is looking ahead to another inflation report out Friday and that will reveal the

00:28 change in wholesale prices.

00:30 In other news, it seems as if Netflix users really don't mind having to sit through advertisements.

00:36 The company announced its ad-supported subscription now has 23 million monthly active users, an

00:42 8 million user increase over the last two months.

00:46 For $6.99 a month, which is less than half the price of its standard plan, streamers

00:51 have access to the full Netflix catalog but must sit through 10, 20 or 60 second long

00:57 ads.

00:58 And starting this year, users will be able to utilize Netflix's new binge ad feature.

01:04 According to the company, after watching three consecutive episodes, members will be presented

01:08 with a fourth episode ad-free.

01:11 Speaking at CES in Las Vegas, Netflix's president of advertising said, "We're very fortunate

01:16 to be able to take a long-term perspective on this.

01:19 Scaling our business is absolutely our biggest priority right now, but we want to make sure

01:24 we're doing that in a meaningful way for the members."

01:28 The company launched the ad-supported tier in 2022 in 12 countries, including the U.S.,

01:33 U.K., Canada and Australia.

01:36 That'll do it for your daily briefing from the New York Stock Exchange.

01:39 I'm J.D. Durkin with The Street.

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