Netflix's Ad-Supported Tier Skyrockets to 40 Million Users, Up From 5 Million

Netflix reported a surge in its ad-supported tier, with global monthly active users reaching 40 million, up from 5 million as compared to last year. This growth signals that the streaming platform has been able to attract new users with a more affordable plan.

Streaming platforms are currently facing stiff competition which has in turn prompted many digital players to introduce bundled offerings to retain viewers.

Netflix had introduced the ad-supported plan in late 2022. According to a report by Reuters, the company said that 40 per cent of all new sign-ups come from these plans in countries where they are offered. Research firm Antenna recently reported that during the fourth quarter, the majority of new subscriber acquisitions in the streaming industry came from ad-supported plans.

Netflix also announced its plans to roll out an "in-house advertising technology platform" by the end of 2025.

Netflix also mentioned that it will be partnering up with Trade Desk, Google Display & Video 360, and an ad-tech company, Magnite. The company's ad-tier plan is priced at $6.99 per month. Whereas, Warner Bros Discovery's Max streaming service starts at $9.99 per month and Disney's Disney+ at $7.99 per month.

Just recently, even Peacock, the streaming service owned by Comcast, announced plans to increase the prices of its subscriptions, with its ad-supported option going up to $7.99 per month.

"We’re being incredibly strategic about how we present ads because we want our members to have a phenomenal experience. We conduct deep consumer research to make sure we stay ahead of the competition, bringing opportunities that are better for members and better for brands," Netflix stated in a blog post.

Earlier this week, Netflix had also disclosed its plans to broadcast two National Football League games on Christmas Day this year as the company is setting its eye on adding more live programming offerings to its streaming service.