Netflix’s cheaper ad-supported subscription service has surpassed one million users in its second month.
The streaming giant’s advertising tier grew by over 500% in its first month and an additional 50% in its second, according to Bloomberg.
The news comes as Netflix continues to battle it out against Disney Plus, which also launched an ad-supported tier recently.
Premiering in the US, France, Germany, Australia and Canada, Netflix’s new cheaper ad-tier reportedly cost viewers between $7 (£6.10) and $9 (£7.85).
The new subscription plan will be an addition to current tiers, meaning existing customers will not be forced to watch ads.
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In July Netflix announced that it has lost one million subscribers in its second quarter. The new ad-tier, originally dreamt-up in April, plans to offset the loss in subscribers due to the fact that many people have opted to ditch the service due to a hike in price most recently.
Co-CEO Reed Hastings said in a letter to the firm’s investors: “Our challenge and opportunity is to accelerate our revenue and membership growth by continuing to improve our product, content and marketing as we’ve done for the last 25 years, and to better monetise our big audience.”
