Netflix set for slowest revenue growth as ad plan struggles to gain traction

Netflix Inc is forecasted to announce its most modest quarter revenue growth rate on Thursday as its advertising-supported plan faces difficulty in drawing in customers in the saturated US market.

This could lead to the company potentially reducing its content spending for the year.

The streaming giant has been struggling with diminishing consumer spending, escalating costs for production financing, and growing competition from Disney+ and Amazon Prime.

The launch of the ad-supported tier was thought to be a solution, but analysts have not observed a significant increase in subscriptions.

The company is expected to have added 4.5 million subscribers in the fourth quarter, which is the least amount added during the holiday period since 2014, as compared to 8.3 million subscribers added in the previous year.