Streaming service Netflix recently reported that its ad-supported tier now has 40 million global monthly subscribers, up from 35 million on the previous year.
The company held off on an ad-supported plan, but in 2022 had a lower-priced option to gain revenue. During its advertising presentation, Netflix says that there are 270 million subscribers around the globe with a large portion of them on the ad-free tier. More than 40% of the sign-ups in regions where ads as supported have subscribed, and more than 70% of ad-supported subscribers watch for more than 10 hours each month. Furthermore, the subscribers are more likely to respond to an ad compared to other streaming service subscribers.
Netflix initially partnered with Microsoft for its ads when it launched, but will switch to an in-house platform in 2025. In addition to launching the ad-supported tier the service has implemented a password sharing crackdown.
