Netflix’s Ad-Supported Tier Surges to 40 mn Users, Signaling Success of Cheaper Plan

Netflix announced that its ad-supported tier has reached 40 million monthly active users, a significant increase from 5 million a year earlier. This milestone underscores the success of Netflix’s strategy to attract new users with a more affordable plan.
Netflix moviesThe surge in users comes amid competition in the video streaming industry, with companies increasingly offering bundles with their rivals to retain subscribers. Netflix introduced its ad-supported plan in November 2022, noting that 40 percent of all sign-ups in countries where the option is available are opting for these plans.

In the fourth quarter, data from research firm Antenna revealed that the majority of gross subscriber additions for the streaming industry came from ad-supported plans for the first time, Reuters news report said.

Netflix also unveiled plans to launch an in-house advertising technology platform by the end of 2025, aiming to provide clients with new advertising buying options and enhance user engagement. The company announced partnerships with Trade Desk, Google Display & Video 360, and ad-tech firm Magnite, joining Microsoft to accelerate automated ad buying.

The ad-tier plan offered by Netflix is priced at $6.99 per month, compared to monthly plans of $9.99 from Warner Bros Discovery’s streaming service Max and $7.99 for Walt Disney’s Disney+. Comcast-owned streaming service Peacock recently announced a price increase for its plans, with its ad-supported plan set to rise to $7.99 per month.

In a further expansion of its content offerings, Netflix revealed plans to stream two National Football League games on Christmas Day this year, signaling its commitment to adding more live programming to its streaming service.