Netflix’s ad-based tier aims to reduce the high churn the company faced in 2022, attract new subscribers, and lure back those who canceled. However, by all measures, the rushed experiment is failing fast.
Last year was the first year in the previous four years that didn’t welcome a new subscription streaming service from Hollywood’s major players. The lack of a new streaming service did not stop the existing services from offering new ways to watch content through paid and free ad-supported options.
Streaming services are scrambling for new strategies to keep their existing subscribers in a highly crowded domestic market. The level of churn among premium streaming services like Netflix, HBO Max, and Disney+ has accelerated.
In a recent survey of over 5,000 active online subscribers in the United States and Canada, 81% of respondents wished that paid streaming services like Netflix or Amazon Prime Video offered a free, ad-supported option.