The service is in an even better position when you add another element that influences how many people subscribe to Netflix…

Netflix, which started as a DVD rental service, has since moved into streaming, and the service has expanded significantly over time. It is also producing original content and improving the user experience with better features. But there is a price to pay: the service and its costs need to be covered, so subscriptions have had to become more expensive. This has happened recently, and yet the draconian austerity seems to have worked for Netflix…

Despite the price increase and the ban on sharing our passwords, they have 8 million more subscribers. So instead of being able to watch content for free with someone else’s subscription, you have to pay for exclusive content and internationally known shows, which then gives the company more revenue. Ad-supported subscriptions and live events will also be included, helping to make Netflix’s balance sheet even “greener,” the company said Thursday.

So Netflix is now at 278 million subscribers, which also attracts more money by removing the cheapest ad-free subscription tier. That means the number of ad-supported subscriptions rose 34% in the second quarter. The US used to have a basic membership tier, which has been removed. The cheapest overseas subscription is now $15.5 per month, while subscriptions with advertising start at $7, which puts about five minutes of advertising on the screen for every hour of content. The length of the commercials can vary, but they usually play before and after the show for subscribers.

Netflix’s revenue is up 17% year-over-year, and the company expects advertising to be a significant contributor to its bottom line by 2025, thanks to these subscriptions. Just don’t overdo the ads, or they’ll be annoying.

Souce: WCCFTech, Netflix