Netflix’s Ad-Supported Plan Gaining Popularity, According to the Company
Netflix’s ad-supported platform has reached more than 23 million global monthly active users, Variety magazine reported Wednesday, citing the streaming giant’s head of advertising, Amy Reinhard.
The ad tier plan launched in November 2022 in 12 markets, including the US, to attract more customers and add a new revenue stream as competition for online viewers intensifies.
A year after its launch, Netflix said the ad-level plan had reached 15 million monthly active users.
The streaming giant has raised the prices of its ad-free options in an effort to attract more subscribers to the second tier, where ads help bring in more revenue.
“85 percent of Netflix’s ad-supported customers stream more than two hours a day on the platform,” the report quoted Reinhard as saying at the Variety Entertainment Summit at CES 2024 at the Aria Resort and Casino in Las Vegas.
An Insider Intelligence report last month predicted that Netflix would pull ahead of Disney+ in the race for US advertising dollars next year, as price increases and a crackdown on password sharing lure more viewers to its ad-supported plan.
