As of this Wednesday, Netflix reported that 40 million global monthly active users utilize its ad-supported tier, up from 5 million a year ago. This indicates that the company’s efforts to draw new customers with the less expensive plan are paying off.
The increase occurs at a time when streaming providers are up against fierce rivalry and are offering packages with their rivals in an effort to keep users.
In the regions where its ad-supported plans are accessible, 40% of all new users join up through Netflix, which announced the introduction of its plan in November 2022.
Data released earlier this week by research firm Antenna revealed that for the first time, ad-supported plans accounted for the majority of gross subscriber additions in the streaming sector during the fourth quarter.
In an effort to give customers new options for purchasing advertisements and improve user engagement, Netflix also announced that it will introduce an internal advertising technology platform by the end of 2025.
To speed up automated ad buying, the company announced that it will collaborate with Trade Desk, Google Display & Video 360, and ad-tech company Magnite, which is joining Microsoft.
The monthly cost of Netflix’s ad-tier plan is $6.99, while that of Warner Bros. Discovery’s streaming service Max is $9.99, and Walt Disney’s Disney+ is $7.99.
The streaming service Peacock, owned by Comcast, said last month that it would be raising the cost of its plans. As a result, its ad-supported plan would now cost $7.99 per month.
Prior to Christmas Day this year, Netflix said earlier on Wednesday that it would stream two National Football League games, intensifying its efforts to expand its live programming offerings on its streaming platform.