Netflix delivered record subscriber growth in the last 3 months of 2023, adding over 13 million new subscribers. Impressive gains that exceeded market expectation. This might come as a surprise at the end of a year when Netflix made changes to their plans, including restrictions on password sharing and promotion of paid sharing took effect.
In markets where the ad-supported, lower cost membership tier is available, 40% of new subscriber addition entered in that tier. Flipped on its head, the majority of new customers still preferred the “fully paid” ad free option.
A clear signal from these results is that consumers reward companies that offer them choice. With three subscription plans, a new Netflix customer can decide what tier and features they want when they consume their entertainment and can easily move between tiers as their wants and needs change.
This flexible approach resonates strongly with the consumer experience Bango delivers through the Digital Vending Machine®. Here, choice is as wide as a consumer can imagine – different service tiers and offer types, different products and services from nearly one hundred content providers .
It’s not just Netflix reaping the benefits from providing choice. Verizon recently launched a Netflix+Max (HBOs movie service) subscription package, using the Bango DVM™ to make the bundle a reality. Both streaming video services are the new, ad-supported tiers. I am certain we will see more ad-supported subscriptions and these kinds of innovate bundles through 2024.
The DVM™ has choice at its heart. Choose what you want, in whichever configuration suits you best. Start, stop or pause services. Decide how you want to pay – telco bill, bank, credit card etc. This year, as we build out the consumer experience features of the DVM™, customers will benefit from greater choice, flexibility and control.
At Mobile World Congress, visitors will learn more about how the DVM™ supports one-time add-ons to basic subscription plans – perfect for monetizing live experiences, “box office” events, and extras. Once again, customers can choose between higher monthly, “all you can eat” subscriptions, or a lower monthly charge with paid add-ons.
Through the DVM™, telcos become the champions of choice for subscription-hungry consumers and content providers can ensure every subscriber can buy the package that meets their needs. Perfect for bringing choice and control for subscribers.