Netflix says it has five million users for its cheaper plan with ads


Mired in controversy: A demonstrator holds up a protest sign outside the Netflix office in a strike by the Writers Guild of America in Los Angeles. Television and movie writers launched a strike for the first time in 15 years over fair pay in the streaming era. — AP

LOS ANGELES: Netflix Inc says its new ad-supported subscription plan has attracted five million monthly active users, six months after its launch.

The US$7 (RM31.67)-a-month plan, less than half the price of its most popular offering, is aimed at juicing growth in an industry where new streaming customers have been harder to come by, particularly domestically.

The monthly users aren’t necessarily subscribers. Some people could be sharing plans.

Still, the number may allay some fears that the ad-supported offering has gotten off to a slow start.

Netflix had 233 million paying members globally at the end of the first quarter.

The company shared the result at its first-ever appearance at the upfronts, an annual ritual where TV networks present their lineups to media buyers in New York.

The streaming industry leader had planned to host the event in-person at its Paris theater but shifted to a virtual one after screenwriters went on strike and threatened to picket the venue.

The Netflix event caps what has been an unusual week for the industry.

The upfronts were thrown into chaos by striking TV and film writers, who walked out on May 2.

Writers banging drums and chanting “no contract, no peace” marched in front of Walt Disney Co’s presentation at the Javits Centre on Tuesday.

Actors who would normally be present at the events largely refused to cross picket lines, leaving executives nervously reading teleprompters before the audiences of ad buyers and journalists.

The strike also raised questions about whether the networks will even be able to deliver some of the shows they’re promoting by the time the new season starts in September.

Comcast Corp’s NBCUniversal kicked off its event on Monday with a musical number featuring Ted, the foul-mouthed animated teddy bear played by Seth MacFarlane, who’s getting his own show on the Peacock streaming service.

But the company also had to acknowledge some high level departures.

The head of ad sales, Linda Yaccarino, left to become chief executive officer of Twitter Inc. NBCUniversal’s TV chief Mark Lazarus wished her well from the stage, while also acknowledging the recent firing of his own boss, Jeff Shell, over sexual harassment claims.

“We’ve had some changes around here but the strength, expertise and spirit of this company remain not only intact, but stronger than ever,” Lazarus said.

Fox Corp’s news, sports and reality TV personalities made up for the lack of actors at its event.

The Fox broadcast network announced six new shows for the upcoming season; two dramas, two animated series and two game shows.

Disney’s ABC leaned heavily on its reality TV slate in its fall schedule announcement with returning shows such as Dancing with the Stars and Bachelor in Paradise.

Warner Bros Discovery Inc also promoted new unscripted programming, including a travel show featuring comedian Conan O’Brien and one from actor Robert Downey Jr about restoring classic cars.

Even though the upfronts are rooted in the sale of TV spots on traditional TV networks, all of the companies emphasised their streaming businesses this week.

NBCUniversal announced that it would stream a National Football League Wild Card Playoff game exclusively on its Peacock service in January, the first time the league has done that.

Disney recruited YouTube sports commentator Pat McAfee, who’ll air his show on the company’s ESPN cable TV and online networks starting later this year. — Bloomberg

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