Netflix’s Ad-Supported Tier Hits 40M Monthly Active Users Globally
Netflix’s ad-supported tier has passed a new benchmark. Up from 5 million a year ago, the ad tier now has 40 million monthly active users worldwide. In the 12 countries where it is available, the plan accounts for more than 40% of new streamer sign-ups. Along with these updates to the ad tier, the company also unveiled its own internal adtech platform.
Netflix’s ad-supported tier hits a milestone
With over 70% of its ad-supported users watching Netflix for more than 10 hours a month, Nielsen reports, Netflix took a moment during its upfront presentation at Pier59 Studios, where it’s also hosting a two-day experience with rooms themed after popular series, to brag about how engaged its users are. In addition, it claimed that viewers are twice as likely to respond to an advertisement three hours into a show as they are when they first start, in contrast to other streaming services and linear TV.
It appears that Netflix’s move into an ad-supported business model has been successful. Across all tiers, there were 270 million users of the service as of April. Furthermore, Netflix reported that over 40% of new users were registering for the ad-supported tier in areas where advertisements are available. The streamer anticipates that its upcoming platform will give advertisers new perspectives on impact measurement and purchasing strategies. To accommodate new partners like Google’s Display & Video 360, Magnite, and The Trade Desk, Netflix is also currently growing its buyers’ market.
Read More: Amazon Prime Video Estimated to Generate $1B From Ad-Supported Tier in Debut Year
Netflix to introduce in-house ad tech platform
Netflix announced its intention to introduce “an in-house advertising technology platform” along with the milestone. “Bringing our ad tech in-house will allow us to power the ads plan with the same level of excellence that’s made Netflix the leader in streaming technology today,” stated Amy Reinhard, president of advertising at Netflix. Co-CEO Greg Peters stated during Netflix’s most recent earnings report that “plenty more” needs to be done to “realize the potential” in the ad tier. The company also revealed many upcoming projects, including a renewal for 3 Body Problem, in addition to the ad tier updates.
NFL Christmas Day games on Netflix
The announcement of Netflix’s intention to expand into live events coincides with the news that streaming rights for NFL games on Christmas Day have been acquired. This comes after several live comedy specials and will soon be joined by weekly WWE broadcasts and a boxing match involving Jake Paul and Mike Tyson. Additionally, it coincides with a period in which Netflix and its rivals have begun to resemble traditional cable TV due to price increases and bundles
Read More: Roku and The Trade Desk Announce New Data-Driven TV Streaming Partnership
Upcoming series and movie lineup
Ted Sarandos, the other co-CEO of Netflix, was very transparent about the initial looks and teases of the shows the company would be showcasing before its upfront event. These included Ryan Murphy’s Monsters: The Lyle and Erik Menendez Story, Cobra Kai, Emily in Paris, Outer Banks, The Night Agent, and Season 2 of Squid Game, which Sarandos referred to as “our big one.” The Waterfront, Rising: Simone Biles, and untitled projects about Olympic Men’s Basketball, a Tim McGraw-led drama, and a Dallas Cowboys docuseries are among the new series the company has announced.
A sequel starring Adam Sandler as Happy Gilmore and a Kathryn Bigelow film were among the new releases that were announced at the same time. The news rounds out Netflix’s big news day, which also featured the previously reported Christmas NFL deal. The three-year deal is expected to transform the TV industry and position the streamer as a top competitor for upfront TV funding.
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Author Profile
- Netra is a Dual Masters graduate in International Business and Marketing. She is a content-writing enthusiast and a social media addict. In her downtime, you will find her headbanging to Pop songs from around the world. She is also a sports fanatic and especially loves F1, Volleyball, and Cricket. Her hobbies are baking and watching Anime.
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