An ad-supported tier and the crackdown on password-sharing can accelerate subscriber momentum as well as lift ARPU.
Non-subscribers want in on Netflix. Based on our data, Netflix is poised to add 6-14m subscribers in the US alone with ad-supported streaming.
Password sharing is not a problem exclusive to Netflix; however, they do seem the most keen to act on it. This is good news; AlphaROC’s data reveals almost 1 in 5 people share their Netflix passwords, and half of them are willing to pay an extra $2.99 a month for the privilege.
Remember, the customer is always right, especially when it can lift ARPU!
Curiously, however, Netflix ranks lower than its competitors when it comes to content satisfaction (HBOMax, Disney+, and even Discovery+). Trying to predict the success of entertainment is a fool’s game, but we believe these initiatives will help weather the storm.
Ad supported tier