Netflix is eyeing a free ad-supported TV (FAST) option, according to the company’s co-CEO Ted Sarandos.
“We are open to all these different models that are out there right now, but we have got a lot on our plate this year, both with the paid sharing and with our launch of advertising and continuing to this slate of content that we’re trying to drive to our members,” Sarandos said during the earnings call. The streaming platform has reported its Q4 2022 financial results, topping 230 million global subscribers, up from 223.09 million.
Also read: Reed Hastings to step down as Netflix chief
TechCrunch quoted a ScreenMedia report that the FAST industry will reach 216 million monthly active users in 2023, driving $4.1 billion in ad revenue. Another report by Kantar has revealed that Netflix’s ‘basic with ads’ subscription plan is not paying as much as the company anticipated. The plan is available in the US, the U.K., France, Germany, Spain, Italy, Australia, Japan, Korea, Brazil, Canada, and Mexico. The company has no immediate plans to expand but may target larger ad markets.
In a recent letter to shareholders, the company wrote that the launch of its ad-supported tier was successful and admitted it had “much more still to do.” It said that 2022 was a tough year. According to a TechCrunch report, the company reported $7.85 billion in revenue in Q4 2022.
Also read: Netflix iOS app gets an overhaul