Netflix’s Ad-Supported Plan Hits 70 Million Viewers

Netflix, which first opposed the idea of letting ads on its well-liked streaming programming, is now big on them.

According to Netflix, 70 million people watch its ad-supported shows each month, which is almost twice as many as in May.

Around 70 million people use Netflix’s ad-supported tier each month worldwide. The news: With 70 million monthly active users worldwide, Netflix’s ad-supported tier has experienced a stratospheric surge. Compared to 40 million in May and 22 million when the initiative was first introduced two years ago, this represents a notable increase.

Big marketers want to see a growth trajectory before they take Netflix’s advertising options more seriously, and the streaming behemoth announced on Tuesday that its ad-supported tier now reaches 70 million users worldwide, up from the 40 million it disclosed in May and the 22 million it cited in January.

Amy Reinhard, the company’s head of advertising, stated in a blog post on Tuesday that over half of new members are choosing Netflix’s ad-supported plan in the regions where it is available. The business reports “steady progress” in each of the 12 nations where the advertising package is offered.

Amy Reinhard, Netflix’s head of advertising, said in a statement that the streaming service is still “seeing steady progress across all countries’ member bases.” “Now, in ad-supported countries, more than half of new Netflix sign-ups are for the ads plan.”

Despite Netflix’s strong global numbers, most marketers choose to target distinct promotional messages in specific geographic regions rather than making global ad buys. Additionally, media buyers in the United States have suggested that advertisers would want to see the Netflix ad tier create more impressions overall. However, the ad-tier subscriber growth has continued, which may attract Madison Avenue’s attention again.

Although its ad business is currently small in comparison to its peers, Netflix intends to make advertising a significant source of revenue to supplement subscriptions. Before introducing advertising in 2022, the company spent years positioning itself as an alternative to ad-supported TV.

Netflix has achieved consistent growth by positioning its ad-supported plan as a more affordable option for consumers on a budget. In May, the company’s ad programs had 40 million active monthly users. It had 282.7 million customers at the end of the third quarter.

Most of their video customers have switched to plans with advertising since certain competitors, including Amazon.com Inc., have made it more expensive for users to choose not to see advertisements.

Like its rivals, Netflix is making investments in live content, like World Wrestling Entertainment and the National Football League, which will expose its users to advertisements and generate more inventory for marketers.

For two live NFL games on Christmas Day, the firm reported that all of its in-game inventory was sold out. Two of the main sponsors, FanDuel and Verizon Communications Inc., each have their own features or markets. Netflix will debut the second season of the South Korean survival drama Squid Game the day after Christmas. Kia Corp. in South Korea will be one of the sponsors in the 12 nations where the corporation will run ads.

Reinhard stated that Netflix had sold out of commercial inventory for its upcoming NFL broadcasts on Christmas Day, marking the first time the streaming service will air live games from a major league. Verizon and FanDuel will be among the game’s sponsors. FanDuel will be the only sportsbook betting partner during a pre-game show that features a sponsored section with talent providing predictions and analysis linked to FanDuel’s game odds. A segment sponsored by Verizon will air before kickoff.

She also provided information on sponsorship for the upcoming “Squid Game” season. Netflix has “partnered with multiple advertisers across our 12 ad-supported countries, including Kia in Korea,” the executive stated. As part of that pact, Kia will get to spotlight its “New Sportage,” a crossover SUV, with a three-part set of linked commercials. Additionally, Kia will hold a “pop up” event at the Seoul complex known as Kia Unplugged Ground.

Two other areas that are becoming increasingly important to significant sponsors are ad-tech and audience measurement, both of which Netflix has started to experiment with.

The business would “deliver advertisers cross-screen and live viewership measurement,” according to Reinhard, using technology from VideoAmp, one of several startups competing with Nielsen to count viewers.

Both will begin in January when WWE debuts on Netflix. Beginning in early 2025, Netflix plans to use Kantar Ibope CAV in Brazil to analyse cross-publisher reach and frequency. Additionally, in October, the business extended its collaboration with Barb in the United Kingdom to analyse the watching habits of users of the ad-supported Netflix tier in that country.

Nielsen has also been hired by Netflix to track live NFL game viewership in the US. The Media Rating Council has approved a new technique in which the streamer would add its own first-party data to the tabulation.

As part of a move it announced earlier this year to sever ties with Microsoft, Netflix also announced that it had started using its own ad-tech in Canada. Reinhard stated, “We look forward to introducing new targeting, reporting, measurement, and insights as well as enhanced forecasting capabilities as we continue to develop our ad tech.” “Throughout 2025, Netflix’s proprietary advertising technology will be implemented globally.”