Los Gatos, California – Netflix announced on Wednesday that its cheaper, ad-supported tier has reached 40 million monthly active users worldwide, nearly doubling the 23 million reported earlier this year. This growth comes as the streaming giant continues to expand its audience and diversify its revenue streams.
In addition to the increase in ad-supported users, Netflix revealed plans to launch its own advertising platform, discontinuing its partnership with Microsoft for that technology. This move signals the company’s commitment to exploring new avenues for revenue generation amid a changing streaming landscape.
The introduction of the ad-supported plan in November 2022 was part of a broader strategy to drive revenue growth and address challenges in subscriber expansion. With 40% of new signups opting for the cheaper ad-tier plan, Netflix now boasts a total of 270 million subscribers worldwide.
The decision to stop providing quarterly subscriber updates reflects Netflix’s confidence in its financial performance and overall growth trajectory. The company emphasizes that membership numbers are not the sole indicator of success, especially as it offers a range of price points to cater to diverse consumer preferences.
As linear TV audiences decline and traditional media companies transition to the streaming market, Netflix’s dominance in the industry remains undisputed. While competitors like Comcast’s Peacock streaming platform boast significant subscriber numbers, they still trail behind Netflix in overall reach and influence.
The surge in ad-tier users underscores the shifting dynamics of the streaming landscape, where content providers must adapt to changing consumer preferences and market trends. Netflix’s strategic focus on ad-supported options and revenue diversification positions the company for continued success in a rapidly evolving industry.