Netflix expects 40 million new viewers by 2023 with its new subscription plan

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What you need to know

  • Netflix reportedly is aiming to lure 40 million new viewers by late 2023.

  • The projected numbers are part of the talks between Netflix and its ad buyers.

  • The streaming service is yet to decide on the launch of its ad-supported cost-effective plan.

In June, Netflix's co-CEO Ted Sarandos confirmed that ads were coming to the streaming service. Things are yet to materialize on how to launch the new subscription. However, some preliminary projections suggest that with the new advert-supported version, the streaming service could hit 40 million viewers by 2023.

"We are still in the early days of deciding how to launch a lower priced, ad supported tier and no decisions have been made," a Netflix spokeswoman said to WSJ in a statement.

The projection report comes from Wall Street Journal, citing a document shared between Netflix and its advertising partner Microsoft to its ad buyers. The streaming service has provided its shared projections for 'unique viewers' in select markets where it could launch its potential ad-supported plan in conjunction with ad buyers.

The concerned executives from both Netflix and Microsoft have reportedly met ad buyers to gauge plans to launch the cost-effective tier sometime later this year. The projections from the document suggest out of the 40 million users, 13.3 million are expected to be from the U.S. The ad executives were further told by Netflix that the platform may reach a 'unique 4.4 million viewership' globally by the end of 2022.

According to projections provided by Netflix, the supposed launch markets include countries like Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, Spain, and the U.K.

According to WSJ, the viewership is said to be more than the projected numbers as more than a single person from a household would view the alleged new advert-supported plan. Further, the company is said to be in the evaluation process of witnessing the demand of the ad-supported tier before launching to the masses.

Despite being one of the best streaming services, early this year, Netflix has seen a massive drop when it comes to its subscribers. Competitive players are rising in the streaming space and have affordable ad-supportive tiers in place.

So, with existing premium subscriptions remaining in place, Netflix's new approach appears to be a potential move for the future. With its low-cost price and some caveats, it may also attract a new audience to the platform.