Netflix net additions are to be sequentially lower in Q2 on account of typical seasonality. However, the company should continue to benefit from its ad-supported tier which is enabling it to attract more price-sensitive customers with a price of just $7 per month in the U.S.
Moreover, the ad-supported plan is expected to generate more revenue per user than some of Netflix's ad-free plans as incremental ad revenue more than offsets the discount offered on the ad tier. Over Q1, Netflix said that average revenue per membership rose to 1% year over year and by about 4% adjusted for foreign exchange effects.
#netflix-stock-performance #ad-supported-plans #revenue-generation #subscriber-growth #password-sharing-crackdown
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