Netflix's advertising-supported tier has reached 40 million monthly active users globally, nearly double its 23 million figure at the start of 2024. The streaming giant announced the milestone at its first in-person upfronts presentation in New York.
Netflix President of Advertising Amy Reinhard revealed that 40% of all new signups now choose the ads plan in countries where it is available. At $7 per month, the tier is cheaper than most competitors and Netflix's own ad-free options, and it also offers a more affordable alternative to password sharing.
After years of resisting advertising, Netflix reversed its stance in 2022 and launched the ad tier later that year with Microsoft as a partner. Despite a bumpy start, advertising has become a key strategic initiative, with live programming including comedy, award shows, and sports. Netflix recently announced a deal with the NFL to stream two Christmas Day games this season.
Reinhard also announced that Netflix will launch an in-house ad tech platform, giving advertisers new buying options, insights, and measurement tools. Chief Content Officer Bela Bajaria highlighted audience engagement, noting that over 70% of ad-supported subscribers watch more than 10 hours per month, according to Nielsen, 15% higher than the nearest competitor.
Vice President of Advertising Sales Peter Naylor closed the presentation on an upbeat note, saying, 'There’s a lot to be excited about over the next year. But the story of ads on Netflix this year is pretty simple: It’s about growth and momentum.'
