Netflix is ​​offering local advertisers their money back

These factors are also exacerbated by volatility in the local advertising market caused by factors related to inflation and a weak economy.

Netflix said in its most recent earnings call that the number of people who signed up for its tier of advertising has improved. It told global advertisers in January that signups for the January ads tier doubled from December, but didn’t say how many signups that was. The information has reported that when Netflix first introduced the promotional offer to marketers, it told advertisers that it expects the tier to attract 1.75 million subscribers by the end of the first quarter.

In Australia, Netflix competes with two other major streaming services for advertising money, as well as traditional TV broadcasters. But it’s preparing to face another competitor when Foxtel launches advertising on its Binge entertainment service. Disney has also announced plans for an ad-supported tier.

Binge and Disney+ are introducing ads into their existing entry-level packages, but Netflix chose to build an ad-level audience base from scratch. The product is expected to be promoted to Australian consumers in the coming months.

The Business Briefing newsletter delivers important stories, exclusive coverage and expert opinions. Sign up to receive it every weekday morning.