Netflix has revealed that its ad-supported subscription tier now boasts an impressive 94 million monthly active users worldwide. This milestone, shared during the company’s advertising presentation, highlights the rapid rise in popularity of the budget-friendly, ad-inclusive plan. The number marks a notable jump from the 70 million reported in November 2024, showcasing the tier’s swift growth.
Introduced in late 2022 at a U.S. price of $7.99 per month, the ad-supported plan initially faced skepticism from some analysts. Despite that, it has quickly become a major contributor to Netflix’s subscriber growth. In areas where the plan is available, it now makes up more than half of all new subscriptions—signaling strong demand for lower-cost streaming, even with occasional ads.
Amy Reinhard, Netflix’s President of Advertising, emphasized the strong engagement within the ad-supported tier, stating that viewers on this plan spend an average of 41 hours per month on the platform. She also highlighted that attention levels during mid-roll advertisements are comparable to the engagement with the content itself. This data is crucial for advertisers looking to reach a large and attentive audience.
The success of the ad-supported tier positions Netflix as a significant player not only in the streaming market but also in the digital advertising space. The company is actively developing its advertising capabilities, with the rollout of its in-house ad tech platform, “The Netflix Ads Suite.” This platform, now live in the US and Canada and slated for full global availability across all 12 ad-supported countries by June, offers advertisers enhanced targeting options, leveraging user interests and demographic data.
Netflix is also introducing innovative ad formats, including interactive mid-roll and pause ads that utilize generative AI to integrate seamlessly with the platform’s content. These advancements aim to create a more engaging and less disruptive advertising experience for viewers.
The rapid growth of Netflix’s ad-supported tier reflects a broader trend in the streaming industry, where consumers are increasingly open to ad-supported models as a way to access premium content at a lower cost. Competitors like Hulu, Disney+, and Peacock have also seen significant traction with their ad-integrated offerings.
This development signifies a potential long-term shift in how streaming services operate and generate revenue. While subscription fees remain a primary income source, advertising is emerging as a crucial component of the business model, allowing Netflix to cater to a wider range of price sensitivities and further expand its global reach. As competition in the streaming landscape intensifies, the ad-supported tier is proving to be a valuable tool for Netflix in attracting and retaining subscribers.
