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Highlights:
Netflix's ad-supported tier now boasts 70 million monthly users, nearly doubling in six months.
Over 50% of new sign-ups in regions with the ad tier choose this budget-friendly option.
The platform is enhancing ad capabilities with new updates and partnerships.
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Netflix announced that its ad-supported tier now serves 70 million monthly active global users. This is almost double the 40 million users reported in May and more than triple the 22 million cited in January.
The growth has been steady since the ad tier’s launch in November 2022. “We continue to see steady progress across all countries’ member bases,” Amy Reinhard, Netflix’s president of advertising said.
This tier, launched in November 2022, has attracted subscribers by offering a lower-cost streaming option at $6.99 per month in the U.S., as Netflix gradually phases out its cheapest ad-free plan.
Ad-supported plans drive new sign-ups
Netflix claims that more than 50% of its new sign-ups are for the ad-supported tier in regions where it’s available, including 12 countries. In July, it reported a surge in ad-supported signups with 45% of new signups. Last month, the platform reported it gained 5.1 million new streamers during the third quarter.
Netflix investments in ad tech and audience measurement
Netflix says it is enhancing its ad capabilities with new measurement technologies. In the U.S., Netflix will use VideoAmp to measure cross-screen and live viewership starting with WWE content in January. In Brazil, the company will work with Kantar Ibope CAV for cross-publisher reach in 2025, and it has expanded its partnership with BARB in the U.K. to measure the viewing habits of ad-supported subscribers.
For its NFL games, Netflix will rely on Nielsen for live viewership metrics, contributing its first-party data to create a hybrid approach recently approved by the Media Rating Council.
Netflix’s first ad-tech hub
Canada recently became the first country where Netflix operates solely on its in-house ad tech. Netflix plans to roll out this technology worldwide by the end of 2025. The platform says it will provide enhanced forecasting, targeting, reporting, measurement, and insights.
Netflix's partnerships and collaborations
Netflix also signed FanDuel as an exclusive pre-game sports betting partner for its Christmas Day NFL broadcasts. The partnership will feature a segment with FanDuel providing analysis and predictions based on its game odds. Verizon is also sponsoring a pre-kickoff segment for these NFL games.
The platform will also partner with Kia in Korea. As part of this sponsorship, Kia will promote its “New Sportage” SUV with a series of linked commercials tied to “Squid Game.” It will also hold an event at Kia Unplugged Ground in Seoul.
11/12/2024
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