Netflix’s cheaper, ad-supported tier has reached 40 million global monthly active users, a nearly doubled figure from January. The streaming giant also announced the launch of its own advertising platform, no longer partnering with Microsoft for that technology. The company introduced the ad-supported plan in November 2022 as part of its efforts to drive revenue amid slowing subscriber growth, which included a password-sharing crackdown. 40% of all sign-ups in countries where the ad tier is available are for the cheaper plan, with Netflix now totaling 270 million subscribers.
The decision to stop providing quarterly subscriber number updates was made by Netflix just a month ago, as the company stressed its focus on generating substantial profit and free cash flow, noting that membership numbers were not the sole factor in its growth. With the surge in ad-tier users, the company is capitalizing on the decline in linear TV audiences and the increasing challenge for traditional media companies to establish profitable streaming platforms. Netflix has asserted itself as the leader in the streaming segment, with competitors like Comcast’s Peacock having far fewer subscribers.
The rise in ad-tier users coincides with the shrinking viewership of linear TV and efforts by traditional media companies to join the streaming realm. The competition is intensifying, with Netflix maintaining its dominance in the market despite challenges from other companies struggling to make their streaming platforms profitable. With 40 million monthly active users on the ad-supported tier, Netflix is showing its ability to adapt to the changing media landscape and maintain its position as a leader in the streaming industry.
The success of Netflix’s ad-supported tier highlights its strategy of offering multiple price points for memberships to attract a wider range of users and drive revenue amid slowing subscriber growth. By reaching 40 million global monthly active users, the company is expanding its user base and solidifying its position as a key player in the streaming market. The decision to launch its own advertising platform indicates Netflix’s commitment to controlling its advertising technology and driving further revenue growth through targeted ad campaigns.
As the streaming landscape evolves, Netflix’s growing user base and revenue streams are positioning the company for continued success in the competitive market. By focusing on driving revenue through ad-supported tiers and launching its own advertising platform, Netflix is adapting to changing consumer preferences and industry trends to maintain its leadership position in the streaming industry. With 270 million total subscribers and 40 million active users on the ad-supported tier, Netflix is demonstrating its ability to innovate and thrive in an increasingly crowded and competitive market.
