Two years after launching its first ad-supported subscription tier, Netflix is sitting pretty. In a blog post, Netflix President of Advertising Amy Reinhard revealed that the streamer’s ad tier now has 70 million monthly active users.
That number indicates a meteoric rise for Netflix’s newest subscription tier. The number of subscribers watching with ads has nearly doubled since May, when Netflix reported 40 million customers for its ad-based subscription. That number had already doubled the total from January 2024.
“As we celebrate two years since launching Netflix’s ads business, we continue to see positive momentum and growth across all areas of the business,” Reinhard wrote. “We’re excited to now reach 70MM monthly active users globally and continue to see steady progress across all countries’ member bases.”
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Given how the ad tier fared in its earliest days, its current upward trend comes as a bit of a surprise. After fast-tracking the new subscription option and launching it in November 2022, Netflix encountered resistance from agencies (some of whom bristled at the streamer’s asking prices) and dealt with inventory issues. It had to pay back some advertisers after falling short of volume projections on its ad tier.
So how did Netflix’s ads go from clunkers to cash cows? The streamer’s crackdown on password sharing had something to do with it. When Netflix informed customers that it would no longer allow them to share login info with users in other locations, its signups went through the roof.
When freeloaders are forced to buy their own subscriptions, one would expect them to opt for the cheapest possible option, and that seems to be exactly what’s happening. In regions where the ad-supported plan is offered, half of Netflix’s new sign-ups come in that tier, according to Reinhard.
Netflix’s ads are officially here for the long term, and that could have dramatic ramifications for the company’s metrics. When digital platforms adopt ads, enhanced measurement tools typically follow close behind. Netflix is no exception. Reinhard said that her team has partnered with Nielsen to provide ratings for its upcoming Christmas Day NFL slate, and Netflix has also partnered with measurement firm VideoAmp in the U.S.
Those new metrics are arriving on top of the biannual “What We Watched” reports that have offered exhaustive viewership data for Netflix’s entire library. A platform that was once criticized for its tight-lipped approach to ratings is now sharing more traffic numbers than ever, and the growth of its ad infrastructure may be a big reason why. The ad-supported tier figures to affect the company’s pickup and renewal choices moving forward, and 70 million customers have already gotten on board.,
