Netflix's Ad-Supported Tier Gains Momentum

Netflix's ad-supported tier, launched in November 2022, has rapidly gained popularity, surpassing 70 million global monthly active users. The company revealed that over half of new sign-ups in eligible countries are opting for this more affordable plan.

Amy Reinhard, President of Advertising at Netflix, expressed satisfaction with the tier's performance. She stated, "Netflix continues to see steady progress across all countries’ member bases. Now, over 50% of new Netflix sign-ups are for the ads plan in ad-supported countries."

This significant growth underscores the appeal of the ad-supported tier, which offers a more budget-friendly way to access Netflix's vast library of content. By introducing this tier, Netflix aims to expand its user base and attract a wider audience.

In addition to the success of its ad-supported tier, Netflix has also made significant strides in the realm of live sports. The company has secured the rights to broadcast NFL games on Christmas Day, marking its first venture into live sports. Advertisers, including FanDuel and Verizon, have already committed to sponsoring these games, indicating the growing commercial potential of Netflix's platform.

Netflix is also expanding its advertising business by launching its own advertising platform. This move will allow the company to have greater control over its ad inventory and revenue. The platform is currently available in Canada and is expected to launch in the United States and globally in the coming months.

As Netflix continues to innovate and adapt to the changing landscape of the streaming industry, its ad-supported tier and live sports initiatives are poised to drive further growth and success.