Netflix’s ad-supported streaming tier now has 40 million global monthly active subscribers, up 35 million from a year ago, the company announced today during its Upfront advertising presentation. Netflix has 270 million customers globally; thus, most users remain in the ad-free tier.
Netflix delayed deploying an ad-supported tier for many years but acknowledged in 2022 that it intended to launch a less expensive option to increase income. The Standard with Ads plan debuted in late 2022, and it has risen in popularity as Netflix has raised the price of its ad-free tiers.
In the United States, the Standard with Ads plan costs $6.99 a month for HD streaming on up to two devices simultaneously, and it offers everything but a “few” movies and TV shows.
The essential ad-free subscription costs $15.49 monthly, while the premium plan costs $22.99. Netflix’s ad-supported plan does not allow you to download content for offline watching, and it does not enable spatial audio.
According to Netflix, the ad-supported plan accounts for more than 40% of all signups in areas where it is available. More than 70% of Netflix’s ad-supported customers watch Netflix material for more than 10 hours each month, and the company claims that its users are twice as likely to respond to an ad than subscribers to rival streaming services.
Since launching its ad-supported tier, Netflix has worked with Microsoft on commercials, but it will introduce its ad platform in 2025.