Two years after its inception, 70 million people worldwide utilize Netflix’s less expensive, ad-supported tier each month.
In nations where the choice is available, the business reported on Tuesday that over 50% of its new sign-ups are for ad-supported subscriptions. According to Netflix, it has observed “steady progress across all countries’ member bases” and is still “seeing positive momentum and growth across all areas of the business.”
In response to a slowdown in subscriber growth, Netflix introduced the option in November 2022.
Growth in subscribers hasn’t been a problem lately. Netflix said last month that it exceeded Wall Street forecasts by adding 5.1 million new members in the third quarter. Across all of its pricing categories, Netflix has 282.7 million subscribers overall.
As it turns its attention to revenue and other financial measures as performance indicators, Netflix said that it would stop providing investors with updates on its membership counts starting next year.
Netflix said Nielsen would rate its programming when it first introduced its ad platform two years ago.
In May, Netflix said that, as part of a three-year agreement, it will broadcast two NFL games on Christmas Day this year. It said on Tuesday that all of its available ads for the two live games had been sold out.
Additionally, Netflix said that it had signed FanDuel and Verizon as game marketers. According to Netflix, FanDuel will have a sponsored in-show feature and become the exclusive pregame sportsbook betting partner.
In order to attract users with lower-priced plans and generate advertising income that may help propel streaming businesses toward profitability, media organizations have been concentrating on ad-supported tactics for their streaming alternatives. The ad market has expanded for streaming and internet companies, but it has been sluggish for traditional TV.
In May, Netflix released its most recent information on its ad-supported tier, claiming to have nearly doubled its January total of 40 million monthly active users worldwide. During Upfronts, when media firms pitch to advertisers, that announcement was made.
In May, Netflix also declared that it will discontinue its collaboration with Microsoft on advertising technologies and introduce its own platform. By the end of the second quarter of next year, it intends to deploy the platform in the United States after rolling it out in Canada. By the end of 2025, the platform will be operational worldwide.
