Netflix launched a subscription tier for Basic with Ads back in November to generate new subscribers. The tier, at an affordable price of 6.99, supported ads, and also restricted some shows. After the launch, many groups estimated that the streaming platform would cost $5,5 billion by 2027.

Netflix’s Wednesday ended the billion hours streamed mark, so the third season has only been running.

There is no sign that customers want a cheaper subscription. According to the Data Analytics firm, Antenna, the Basic and Ads level had the least number of new subscribers between November and December 2022. Antenna revealed that only 9% of new Netflix subscribers followed the Basic with Ads plan for the first month of existence.

The analytics firm found that over half of those who voted for the tier were users who wanted to renew their subscription after it expired or those who were joining the first time. Four-thirds of that figure were existing subscribers who downgraded their subscription from a pricier plan.

Netflix has found the 9% increase in subscriber rate disappointing, given the fact that HBO Maxs similarly attempted to make a 15% new subscriber in its first month, with only one4% of these subscribers downgrading from more expensive plans. This streaming company doesn’t seem to have liked a show so poorly.

Glass Onion is a broken egg of the world. This content has been good for the audience and is promising for the platform.

The company rejected the Antennas report saying it is inaccurate. In an email with Gizmodo, a company spokesperson stated that “we still are very early days to serve our ad-supported tier and were pleased with its launch and engagement, as well as the eagerness of advertisers to partner with Netflix.” The streaming platform response suggests it’s still reserving judgement on its new tier, which is, as well, isn’t surprising given that it lost more than 200 subscribers in two consecutive quarters in 2022, and the ad-supported tier is one of the plans backed up by these losses, as well.

The second plan is to crack up on users who share their passwords and stop them. Although the company has since recovered from its losses, with 2.4 million subscribers and a 70% gain in stock price, the new report ad-supported tiers performance slid its shares by 9%.

The streaming platform is working on delivering great shows to its audience and recently greenlit a live-action spinoff of its highly successful The Witcher series.

The fundamentality of the Ads is probably based on some factors, besides that the streaming platform cannot show about 15 % of its titles due to the fact that it doesn’t have the right to advertise them on them. These titles include New Girl, Peaky Blinders, The Last of Us, The Good Place and House of Cards.

It doesn’t support movie downloads for offline viewing. Besides, the tier is currently only available in 12 countries, such as Canada, the United States, the United Kingdom, Canada, France, and Mexico. If Netflix works out how to offer ad-supported users more titles and to give them to more countries, it’s likely that the plan will drive more subscribers to the platform.

You can’t argue that the streaming platform is bad news. Its family-inspired show, Tuesday, became the third show with over one billion hours recorded within a month. Even the two live-action films, Glass Onions: A Knives Out Mystery, commissioned by Daniel Craig, broke a limited-release record with a 15 million mark, though he was available in several stores and only had a week’s run.