Netflix has announced a significant milestone in its subscription offerings, revealing that the number of monthly active users on its advertising-supported plan has surged to 40 million. This marks a notable increase from the 5 million reported just a year ago. Amy Reinhard, the company’s president of advertising, shared this update during a presentation in New York, where Netflix unveiled its upcoming programming lineup to potential sponsors.
The surge in ad-plan subscribers now represents over 40% of sign-ups in countries where this plan is available. With a total of 270 million subscribers globally, this development underscores the growing significance of ad-supported models within Netflix’s business strategy.
In response to this growth, Netflix is doubling down on its efforts to leverage advertising as a major revenue stream. The company is set to launch an in-house ad technology platform, a move aimed at enhancing its ability to manage and optimize this aspect of its business. By bringing the technology in-house, Netflix aims to offer advertisers new opportunities for ad placement and improved measurement of ad effectiveness.
Furthermore, Netflix plans to expand its buying capabilities to additional online advertising platforms in the coming months. Collaborating with industry leaders such as The Trade Desk Inc., Google Display & Video 360, Magnite Inc., and Microsoft Corp., Netflix aims to facilitate automated ad purchases and streamline the advertising process for both advertisers and content creators.
To ensure accurate measurement and verification of advertising metrics, Netflix is partnering with trusted analytics providers such as Affinity Solutions, DoubleVerify, iSpotTV, Kantar, Nielsen, and others.
These developments come on the heels of Netflix’s announcement that it will broadcast two National Football League games on Christmas Day as part of a three-season deal. The move into live sports programming reflects Netflix’s broader strategy to diversify its content offerings and attract advertisers looking to reach sports enthusiasts, recognizing the immense value of sports content in the entertainment landscape.
The expansion of its ad-supported plan, launched in 12 markets in November 2022, aligns with Netflix’s broader vision to explore new revenue streams as the streaming industry evolves. Priced at $7 a month in the US, the ad-supported tier offers subscribers a more affordable alternative to the standard plan, reflecting Netflix’s commitment to offering diverse subscription options to its growing user base.
