Netflix has announced that its advertising tier reaches 70 million monthly active users worldwide, a notable increase from 40 million in mid-May. The ad-supported plan now makes up over 50% of new sign-ups in regions where this option is available.
At a subscription price of US$7 per month in the U.S., which is among the lowest in the general entertainment streaming sector, the ad-supported plan has played a vital role in Netflix’s overall subscriber growth. Over the past year, the platform has gained more than 35 million subscribers. Although Netflix no longer discloses subscriber numbers by tier and will stop reporting these figures altogether in 2025, the ad tier’s success is apparent.
In a recent blog post, Amy Reinhard, President of Advertising at Netflix, highlighted the sustained momentum of the ad tier, stating, “We’re just getting started and can’t wait to see what’s to come.”
Netflix has reportedly completely sold out its in-game ad inventory for its two live games, with companies like FanDuel and Verizon as buyers. FanDuel will be the exclusive pregame sportsbook betting partner, sponsoring a special in-game segment with Netflix Christmas Gameday talent, providing analysis and predictions based on their betting odds.
To track these events, Netflix has partnered with Nielsen, following in the footsteps of Amazon’s Thursday night games on Prime Video. Additionally, VideoAmp will measure the WWE’s Monday Night Raw, which is set to premiere on Netflix in January.
Beyond live sports, Netflix also leverages scripted content to appeal to advertisers. For the second season of “Squid Game,” firms like Kia sponsor ad spots in the 12 countries with ad-supported offerings. Kia is collaborating with Netflix on a three-part custom ad campaign and will set up a pop-up experience at Kia Unplugged Ground, their cultural venue in Seoul.
The blog post also mentioned Canada’s transition to Netflix’s in-house advertising technology, moving away from a partnership with Microsoft established in 2022. Netflix aims to have its in-house capabilities fully operational worldwide by 2025. Programmatic ad tools have already been launched in the U.S., Brazil, Canada, and Mexico, with plans to be released in Europe by February 2025, followed by Australia, Japan, and Korea later in the year.
Advertising has been pivotal in helping Netflix implement another critical aspect of its broader strategy: encouraging users to pay to share passwords. Over the last two years, Netflix has introduced a paid sharing plan, which is slightly more expensive than the ad-supported tier, leading many customers to opt for the Basic with Ads subscription instead. This strategy is designed to boost revenue, especially as sign-ups plateau in North America.
