In this article, Netflix’s cheaper, ad-supported tier has reached 70 million global monthly active users two years after its launch. The company stated that over 50% of new sign-ups are for ad-supported plans in countries where the option is available. Netflix mentioned that it continues to observe positive momentum and growth in all aspects of the business, noting steady progress across all countries’ member bases.
The ad-supported option was introduced by Netflix in November 2022 as a response to a slowdown in subscriber growth. However, recent subscriber growth has not been a concern. Last month, Netflix reported adding 5.1 million subscribers in the third quarter, surpassing Wall Street estimates. Overall, Netflix has a total of 282.7 million memberships across all pricing tiers.
Starting next year, Netflix will no longer provide updates on subscriber numbers to investors, shifting its focus towards revenue and other financial metrics as performance indicators. When Netflix launched its ad platform two years ago, it announced that Nielsen would rate its content.
In May, Netflix revealed it would broadcast two National Football League games on Christmas Day this year as part of a three-year deal. The company mentioned on Tuesday that it had sold out its ad inventory for the two live games. Additionally, Netflix stated that FanDuel and Verizon have joined as advertisers for the games, with FanDuel becoming the exclusive pregame sportsbook betting partner and featuring a sponsored in-show segment.
Media companies have been concentrating on ad-supported strategies for their streaming services, offering cheaper plans to attract customers and generating advertising revenue to move towards profitability. While the ad market has been sluggish for traditional TV, it has shown growth for streaming and digital platforms.
Netflix last updated on its ad-supported tier in May, announcing it had reached 40 million global monthly active users, nearly doubling the figure shared in January. This announcement was made during Upfronts, where media companies present their proposals to advertisers. In May, Netflix also disclosed plans to launch its advertising platform, discontinuing its partnership with Microsoft for that technology. The platform has been introduced in Canada and is scheduled for a U.S. launch by the end of the second quarter next year, with a global rollout planned by the end of 2025.
