Netflix's Ad-Supported Tier Sees Significant Upside in 2024 Estimates

Netflix's recent success with its cheaper ad-supported tier has led Oppenheimer to raise its price target for the streaming giant. The analyst firm increased its price target from $475 to $600, citing the significant upside potential in 2024 estimates.

The ad-supported tier has been available for about a year and has seen impressive growth since its launch. According to Netflix's head of advertising, Amy Reinhard, monthly active users have grown to more than 23 million, up from 15 million in November and 5 million in May. This rapid adoption is a testament to the appeal of the ad-supported option, which offers customers a cheaper way to access Netflix's extensive library of content.

The success of the ad-supported tier has led Oppenheimer to revise its estimates for Netflix's 2024 performance. The analyst firm believes that the streaming giant will continue to see significant growth in the coming year, driven by the popularity of its ad-supported option. With more than 23 million customers now subscribed to the ad-based product, Netflix is well-positioned to meet or exceed expectations in 2024.

Netflix's ability to successfully launch and grow its ad-supported tier has been a major factor in the company's recent success. The service offers customers a cheaper way to access Netflix's content, while also providing the company with an additional revenue stream. As more customers turn to streaming services for their entertainment needs, Netflix is well-positioned to capitalize on this trend.

In conclusion, Netflix's ad-supported tier has seen significant growth since its launch, and Oppenheimer's raised price target reflects the analyst firm's optimism about the service's potential in 2024. With over 23 million customers now subscribed to the ad-based product, Netflix is well-positioned for continued success in the coming year.

Netflix price target