In its first virtual Upfront presentation to prospective advertisers yesterday, Netflix (NASDAQ:NFLX) provided updates on its ad-supported plan, launched in November 2022. The company aims to encourage advertisers to choose Netflix for their commercials in order to promote the development of ad revenue.
Netflix stated that its ad-tier plan had amassed nearly five million global monthly active customers within six months of its introduction. The company also said that since the beginning of 2023, the number of its ad-supported subscribers has more than doubled.
Further, the streaming giant highlighted that about 80% of its ad-tier subscribers watched content on television rather than on mobile devices. Also, according to Netflix, 70% of ad-plan subscribers are between the ages of 18 and 49.
A key objective of the firm is to collaborate directly with advertisers to create new types of ads, especially for streaming platforms. Netflix plans to release a 30-minute commercial with the story unfolding gradually while the spectator watches a show on the platform.
Is NFLX a Buy?
On TipRanks, Netflix stock has a Moderate Buy consensus rating based on 18 Buy, 13 Hold, and two Sell recommendations. Further, analysts’ average price target of $368.60 implies 8.4% upside potential.
