Key points:

  • Netflix’s ad-supported plan reached 40 million monthly users worldwide, up eight times from a year earlier.
  • The company plans to launch its own advertising technology platform by the end of 2025.
  • Netflix’s ad-supported plan costs $6.99 per month, which is lower than its competitors.

On Wednesday, May 15, Netflix announced that its ad-supported plan users have reached 40 million monthly users worldwide, up eight times from 5 million a year earlier. This suggests the company’s strategy of attracting new subscribers with a more affordable ad-supported plan is paying off.

What have Netflix done?

The number of ad-supported Netflix users has skyrocketed, highlighting the growing popularity of more affordable subscription plans. This growth comes as competition in the streaming industry increases, with companies forced to offer different packages to retain subscribers.

Netflix, which launched its ad-supported plan in November 2022, reports that 40% of all sign-ups in countries where it is available come from these plans.

Antenna research released this week found that in the fourth quarter of 2023, for the first time in the history of the streaming industry, the majority of new subscribers came from ad-supported plans.

In response to this trend, Netflix has announced plans to launch its own advertising technology platform by the end of 2025, which will allow clients to buy ads and interact with users more effectively.

Resistance to competition

Netflix has announced new partnerships to make it easier for advertisers to buy ads on its platform.

The company will partner with Trade Desk, Google Display & Video 360 and Magnite, allowing advertisers to automate the process of buying ads on Netflix through these platforms. The partnership is part of Netflix’s broader efforts to expand its advertising platform and reach more advertisers.

Netflix’s ad-supported plan costs $6.99 per month, making it more affordable than plans from competitors such as Warner Bros Discovery’s HBO Max ($9.99) and Disney+ ($7.99).

In addition to expanding its advertising capabilities, Netflix also announced that it will broadcast two National Football League games on Christmas Day this year. This could make the service more attractive to viewers looking for sports content.