Netflix’s ad-supported plan passes 40 million monthly active users, the company says

Netflix said on Wednesday that its ad-supported tier reached 40 million global monthly active users, up from 5 million a year earlier, a sign that its push to attract new users with the cheaper plan is paying off.

The jump comes at a time when streaming companies are facing stiff competition and are introducing bundles with their rivals to retain subscribers.

Netflix, which launched the ad-supported plan in November 2022, said 40 percent of all signups came from those plans in countries where they’re available.

In the fourth quarter, the majority of gross subscriber additions for the streaming industry came from ad-supported plans for the first time, data from research firm Antenna showed earlier this week.

Netflix also said it will launch its own ad tech platform by the end of 2025, in an effort to offer customers new ways to buy ads and better engage with consumers.

The company said it will partner with Trade Desk, Google Display & Video 360 and ad tech firm Magnite, which will join Microsoft, to accelerate automated ad buying.

Netflix’s ad-tier plan costs $6.99 a month, compared to $9.99 monthly plans from Warner Bros Discovery’s Max streaming service and $7.99 for Walt Disney’s Disney+.

Last month, Comcast-owned streaming service Peacock said it would raise the prices of its plans, bringing them to $7.99 a month, supported by ads.

Earlier Wednesday, Netflix said it would stream two National Football League games on Christmas Day this year, doubling down on its efforts to add more live programming to its streaming service.

© Thomson Reuters 2024

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