Netflix has hit a significant milestone in its subscription offerings, with the number of monthly active users on its advertising-supported plan skyrocketing to 40 million.
This represents a substantial increase from the 5 million reported just a year ago.
The company’s president of advertising, Amy Reinhard disclosed this update during a presentation in New York, where Netflix showcased its upcoming programming lineup to potential sponsors.
“The surge in ad-plan subscribers now constitutes over 40% of sign-ups in countries where this option is available. With a global subscriber base totaling 270 million, this development underscores the growing importance of ad-supported models within Netflix’s overall business strategy,” Bloomberg reported.
In response to this rapid growth, Netflix is intensifying its focus on advertising as a major revenue stream. The company is gearing up to launch an in-house ad technology platform, aimed at enhancing its ability to manage and optimize this aspect of its business.
By internalizing the technology, Netflix aims to provide advertisers with new opportunities for ad placement and improved measurement of ad effectiveness.
Additionally, Netflix plans to broaden its buying capabilities to additional online advertising platforms in the near future. Partnering with industry leaders such as The Trade Desk Inc., Google Display & Video 360, Magnite Inc., and Microsoft Corp., the firm aims to facilitate automated ad purchases and streamline the advertising process for advertisers and content creators alike.
“To ensure accurate measurement and verification of advertising metrics, Netflix is collaborating with trusted analytics providers including Affinity Solutions, DoubleVerify, iSpotTV, Kantar, Nielsen, and others.”
Netflix’s recent announcement of broadcasting two National Football League games on Christmas Day is part of a broader move into live sports programming, which is in line with the company’s strategy to diversify its content and appeal to sports enthusiasts.
Recognizing the significant value of sports content in entertainment, Netflix aims to attract advertisers through this venture.
Moreover, the expansion of Netflix’s ad-supported plan, introduced in 12 markets in November 2022, reflects the company’s overarching goal to explore new revenue streams as the streaming industry evolves.
Priced at $7 a month in the US, this ad-supported tier provides subscribers with a more economical option compared to the standard plan, highlighting Netflix’s dedication to offering diverse subscription choices to its growing user base.
These developments underscore Netflix’s commitment to adapt to changing market dynamics and consumer preferences.
By venturing into live sports programming and expanding its ad-supported offerings, Netflix seeks to bolster its position in the highly competitive streaming landscape and capitalize on emerging opportunities in the digital entertainment market.