Netflix said Wednesday that its ad-supported tier reached 40 million global monthly active users, up from 5 million a year earlier, a sign that its push to attract new users with a cheaper plan is paying off.
The jump comes at a time when streaming companies are facing stiff competition and introducing bundles with their rivals to retain subscribers.
Netflix, which launched an ad-supported plan in November 2022, said 40% of all sign-ups come from those plans in countries where they are available.
In the fourth quarter, the majority of gross subscriber additions for the streaming industry came from ad-supported plans for the first time, data from research firm Antenna showed earlier this week.
Netflix also said it will launch its own ad technology platform by the end of 2025, in a bid to offer clients new ways to buy ads and better engage with users.
The company said it will partner with Trade Desk, Google Display & Video 360 and advertising firm Magnite to join Microsoft to accelerate automated ad buying.
Netflix’s ad-supported plan costs $6.99 a month, compared to $9.99 a month for Max Warner Bros Discovery’s streaming service and $7.99 for Walt Disney’s Disney+.
Last month, Comcast-owned streaming service Peacock said it would raise the prices of its plans, which would raise its ad-supported plan to $7.99 a month.
Earlier Wednesday, Netflix said it would stream two National Football League games on Christmas Day this year, doubling down on efforts to add more live programming to its streaming service.
© Thomson Reuters 2024
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