Netflix now has 70 million monthly users. This is a big moment for the company. Variety reported this news first. In May, Netflix had 40 million users with ads. That means within a very short span of time, about 30 million more people are confined to this service. Unquestionably, Netflix’s risk of entering a brand-new ad tier is already yielding desired results.
Netflix’s ad tier is rapidly accumulating millions of users searching for a cheap solution, the premium tier remains a home for users who are willing to pay more for an ad-free product.
How Netflix’s Ad-Supported Tier is Taking Off
Netflix’s ad-supported plan was launched in late 2022. Since that time, it has been spreading this offer to more places. The idea is simple. They give viewers a cheaper choice with some ads added. Amy Reinhard, head of Advertising at Netflix, says the company sees steady growth in user numbers everywhere.
More than half of new Netflix sign-ups pick the ad-supported plan. Yes, half of them choose this cheaper option. This shows how popular the ad-supported plan is now. Globally, 70 million users pick lower prices with some ads. Netflix’s plan seems to be working.
Are Existing Subscribers Downgrading?
Netflix is growing its ad-supported plans fast. But there is a big question. Nobody knows if these users are truly new. Some might just switch from a premium plan to save money.
I am one of them. I changed to the ad-supported option. Really, I do not mind a few ads while watching “The Diplomat” or “The Circle.” It is a small cost for cheaper access. This is true, especially if shows play in the background.
Probably, many of the 70 million subscribers are like me. More people use the ad-supported plan. Still, Netflix could lose some money if many downgrade. Yet, the company hopes advertisers will cover the difference.
Attracting Bigger Advertisers
The real question is whether Netflix’s 70 million users every month in the ad-supported tier attract wealthy advertisers. The company hopes so. Signs already show positive results. Netflix announced it sold out all ad slots for its Christmas Day NFL game. This is Netflix’s first step into live sports broadcasting.
Netflix is betting big on live content. The content includes NFL games, wrestling, and cooking shows. This is a very big change. The company built its brand on on-demand streaming. Netflix wants to lure advertisers by offering live events. These events attract large audiences. Advertisers look for engaged viewers. Netflix hopes to be the platform for them.
Netflix’s Foray into Live Streaming
Netflix is focusing a lot on live streaming in 2025. The company is growing beyond just TV series and movies. The Christmas Gameday NFL broadcast will be a big event. All ad spots for the game have already sold out. Advertisers really want to reach Netflix’s audience. Live sports are very popular.
Netflix is trying out themed ads for popular shows. The next season of Squid Game will have a three-part ad by Kia. This creative method is a fresh way to show ads without being too intrusive. New chances for advertisers to connect with viewers arise. These ads can be really unique and special.
Ad Tech and Audience Measurement
Netflix is investing in ad technology and audience measurement. The company teamed up with Nielsen and VideoAmp. This partnership allows them to understand ad effects better. Advertisers obtain clearer insights into ad performance on Netflix. They see how these ads compare to those on other connected TV platforms.
Netflix also created its own ad technology. This tool enhances service for its ad-supported users. Amy Reinhard says this technology aids Netflix in placing ads more effectively. It attracts more high-quality advertisers. Netflix’s ad-supported tier has over 70 million active users worldwide. Advertisers have great chances to reach interested viewers. There’s a lot of potential here.
Could Ad-Supported Streaming Overtake Traditional TV?
Success with Netflix’s paid-for tier shows streaming becoming more and more like TV. Surely, that was the whole point of streaming to let people stream what they wanted when they wanted without advertisements. But 70 million monthly active users on Netflix’s ad-supported plan would be more than willing to turn back to ad-watching for a lower rate.
Indeed, Netflix says that its ad-supported subscribers are 3.2x more likely than any other CTV channel and 4.5x more likely than linear TV customers. Netflix is therefore a fantastic advertising tool when you can run creative, topical ads right into shows.
The Future of Netflix’s Ad Tier in 2025
For the future, Netflix has big plans for its ad-supported bundle in 2025. Live TV, themed ads, and new ad technology are the company’s bet for subscribers and advertisers.
There is even talk of Netflix taking on live sportsbook betting pregames for some shows. This might be a way to earn more ad revenue in the sportsbook and betting space, as companies such as FanDuel are banking on the rise of live sports streaming.
Netflix’s ad-supported tier (its transition to live sports, themed ads, and internal ad technology) reveals how committed the company is to having its ad-funded tier be the bulk of its operation. And 70 million monthly users globally mean it’s not even beginning.
Conclusion
Netflix’s ad-supported tier now boasts 70 million monthly active users globally, with over half of all new sign-ups opting for this cheaper plan. According to Amy Reinhard, Netflix’s head of advertising, these users are 3.2x more likely to engage with ads than on other platforms and 4.5x more likely than traditional TV viewers. Netflix is doubling down on live content, having already sold out ad slots for its upcoming Christmas Day NFL game, and using its new in-house ad tech to attract big advertisers. By integrating ads seamlessly into shows and events, Netflix is creating fresh ways for brands to connect with viewers. The shift towards ads has clearly paid off, with the tier reaching 70 million monthly active users who are willing to watch ads for a lower subscription fee. As more people move to the ad-supported plan, Netflix is redefining streaming and competing directly with traditional TV.
