Netflix Inc (NASDAQ:NFLX) newly launched cheaper ad tier now has 5mln monthly users, representing just over 2% of the group’s total 232.5mln subscribers.
The plan, which was launched in November, is available for £4.99 per month in the UK, £2 cheaper than Netflix’s basic subscription service.
Introduced to garner new customers, the plan was launched around the same time the Californian firm confirmed it would be cracking down on users who were sharing passwords.
In the UK, an additional fee will be introduced in the coming months for people that share a Netflix account but live in a different household.
The streaming company has been introducing these measures after growth slowed post-pandemic.
With millions signing up for the service during lockdown, the group experienced large numbers of account cancellations post-pandemic including a one million drop in users in the first six months of 2022.
In Netflix’s most recent quarter, it gained more than 1.75mln subscribers, underperforming compared to the 2.3mln jump it had expected.
Netflix’s share price has experienced a tumultuous journey post covid.
At the end of 2021 as it was on the path to a US$700 valuation, but the share price plummeted more than 70% in the space of six months.
After falling as low as US$175 in June 2022, the stock has rallied and is up more than 105% in the last year.
Shares in the streaming service were up 7.5% on Thursday, having opened at US$348.