Netflix got yet another lesson in the capricious nature of the media over the last several weeks. In late December, news began to trickle out that its new ad-supported tier “Basic with Ads” was off to a slow start for the company. Basic with Ads launched in November, and was the least-popular signup option for Netflix that month.

But then Netflix’s fourth-quarter earnings report was released, and suddenly everything was sunshine and roses again. The company far outpaced its new subscriber projections, adding a total of 7.66 million users to bring its global total to over 230 million.

Now, the company is celebrating good news once again. As first reported by The Information, Netflix is telling advertisers it doubled the number of new sign-ups on the Basic with Ads plan in January, as compared to the number of new users the tier attracted in December. Netflix did not release specific numbers, but it looks as if the new ad-supported plan is finally starting to gain some traction for the streamer.

The doubling of sign-ups for Netflix’s Basic with Ads plan is a good start, but it should be regarded as a baby step for the streamer. The service reportedly told advertisers it expected to amass 1.75M Basic with Ads users by the end of its first quarter in existence, or roughly 2.4% of its North American subscriber base. Some estimates have shown that by 2027, Netflix could have nearly 60% of its users on the ad-supported plan, but it still has a long way to go before it approaches those numbers.

Still, Netflix needed this infusion of good news. This week, news reporting took another turn toward the ugly side for the service. An apparently erroneously posted Help Center page — first reported by The Streamable — convinced many that Netflix was unveiling its first domestic plans to put an end to password sharing. Those plans are still forthcoming, but the initial reaction to Netflix’s gaffe was strong and negative when people thought sharing a password might end in their devices being blocked.

Once those measures do go into effect, Basic with Ads might see another new infusion of users. Customers who are discouraged from using someone else’s account may decide the $6.99 per month price point is low enough to subscribe on their own, and many users on higher tiers might decide to downgrade instead of churning away. That’s what the company is likely hoping, and it may confirm that the true value of Basic with Ads is in retaining customers instead of attracting floods of new users.

Time will tell exactly what effects Basic with Ads will have once Netflix hands down its real guidelines for password-sharing in the United States, but for now, executives can breathe a sigh of relief. The company is on the positive side of the news cycle once again.

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Netflix is a leading subscription-based video streaming service that offers on-demand access to an extensive library of over 3,000 movies, 2,000+ TV shows, and a growing collection of acclaimed Netflix originals. Renowned for producing groundbreaking content, Netflix has become a cultural powerhouse with hit originals like “Stranger Things,” “Wednesday,” “Squid Game,” “The Crown,” “Tiger King,” “Bridgerton,” “The Witcher,” and “Black Mirror.”

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The platform constantly updates its catalog, introducing fresh content alongside timeless classics and international hits. Netflix’s commitment to storytelling has also earned critical acclaim, with award-winning exclusives such as “Roma,” “Marriage Story,” “The Power of the Dog,” “Mank,” and “Ma Rainey’s Black Bottom.” In 2023, their animated film “Guillermo del Toro’s Pinocchio” won an Academy Award for Best Animated Feature, further solidifying Netflix’s reputation for high-quality content.

Recently, Netflix has expanded beyond standard movies and TV titles with the addition of video podcasts, and is also exploring a digital store that would offer third-party streamers within the app.

Netflix offers three plans – stream on 2 devices in HD with the “Standard with Ads” ($8.99) plan, on 2 devices in HD with the “Standard” ($19.99) plan, and 4 devices in up to 4K on the “Premium” ($26.99) plan.

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