Netflix launched the “Basic with Ads” plan on November 3 at $6.99 per month, compared to between $9.99 and $19.99 per month for an ad-free subscription.
According to analytics firm Antenna, in addition to the Basic with Ads subscribers who signed up for Netflix, the firm observed only 0.1 per cent of Netflix’s existing US subscribers switching to the Basic with Ads plan in November.
Moreover, the report said that HBO Max saw a mild pickup when it first launched its ad-supported option in June 2021.
As the firm previously reported, 15 per cent of HBO’s US Sign-ups were for HBO Max With Ads in its launch month.
In addition, the firm also found that 0.2 per cent of existing US HBO Max subscribers switched to the ad-supported plan in its launch month, about double the Netflix switching rate.
HBO Max With Ads’ popularity did increase over time, accounting for nearly one in three new sign-ups within its first year on the market, said the report.
Currently, the analytics firm estimates that 21 per cent of HBO Max subscribers are to the ad-supported plan.
However, the consumers have demonstrated that they will opt for ad-supported video services with the right price and packaging.