In a significant milestone for Netflix, the streaming giant has announced that its ad-supported tier has reached a remarkable 70 million monthly active users globally. This figure represents a substantial increase, nearly doubling from just six months prior, highlighting the growing demand for more affordable streaming options among customers.
Priced at $6.99 per month in the U.S., the ad-supported plan has gained popularity, with more than half of all new Netflix sign-ups opting for this tier in regions where it is available. This surge in adoption is noteworthy, especially considering that the plan only reached 40 million global monthly active users back in May.
Despite its lower price point, Netflix's ad-supported tier has proven to be a lucrative offering. However, the streaming service has refrained from sharing specific financial details regarding this plan. Some industry analysts have suggested that Netflix could potentially increase prices for its ad-free options to incentivize customers to switch to the ad-supported tier, which typically generates higher revenue per user.
Looking ahead, Netflix does not anticipate the ad-supported tier to be a primary driver of growth until 2026. Nevertheless, the company remains committed to the plan, maintaining its pricing unchanged since its launch in late 2022.
In addition to its expansion in the ad-supported space, Netflix has secured FanDuel as an exclusive pre-game sports betting partner for its upcoming Christmas Day National Football League (NFL) games. This collaboration will see Netflix's Christmas Gameday talent providing analysis and predictions aligned with FanDuel's wagering odds for the games. Notably, all available in-game ad inventory for the two live NFL games has already been sold out, with prominent advertisers such as Verizon Communications on board.
Furthermore, Netflix announced that Canada has become the first country to operate solely on its ad tech infrastructure. The company aims to globally implement this technology throughout 2025, signaling its commitment to enhancing the user experience and maximizing advertising opportunities on its platform.
As a result of these developments, Netflix's shares were up by 1.1% in early trading, reflecting positive investor sentiment towards the company's strategic initiatives and growth prospects.