Netflix is proudly sharing that its ad-supported tier has reached a global audience of 70 million users, according to Variety. This marks a significant leap from the 40 million reported in May, signalling substantial growth since the ad tier’s introduction in 2022.
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Amy Reinhard, Netflix’s president of advertising, noted that the company continues to see “steady progress across all countries’ member bases.” She also highlighted that over half of new Netflix subscribers are choosing ad-supported plans, indicating a shift that brings streaming closer to the traditional TV model.
However, one notable caveat remains: Netflix’s impressive new subscriber numbers reveal little about existing users who may have downgraded from premium tiers to ad-supported options. It’s quite likely that many current subscribers are opting for the cheaper, ad-backed plan.
At the same time, this surge in ad-supported users could attract larger ad budgets, offsetting any losses from premium downgrades. Netflix is airing its first live NFL broadcast on Christmas Day and reports that it has already sold out ad inventory for the event. The company is also betting on more live content, with plans for wrestling events, cooking shows, and talk shows. Recent investments in audience measurement and ad tech should make Netflix a more attractive platform for advertisers.
Netflix is even exploring “themed” ads for specific shows. The upcoming season of Squid Game, for example, will feature a three-part linked ad by Kia. Because nothing says “buy a car” like a brutal, dystopian survival game that hits closer to home with each passing year.
