Netflix’s cheaper subscription with ads has gained 40 million users globally, announced the company during its recent 2024 upfront presentation.
During its launch over 1.5 years ago, the ad tier gained 5 million subscribers within 6 months. Earlier this year in January, it had 23 million users and now it has made the jump to 40 million in less than six months.
Netflix’s total subscribers across all tiers stand at 270 million as of April 2024 and the company has said that 40% of all its users are subscribing to the ad tier in regions where it is available.
Needless to say, the relatively new tier is proving to be popular among users and the company plans to expand on that front. During its 2024 upfront presentation, the streaming service announced that it plans to launch “an in-house advertising technology platform.”
Amy Reinhard, Netflix’s president of advertising, explained this move with a statement.
Bringing our ad tech in-house will allow us to power the ads plan with the same level of excellence that’s made Netflix the leader in streaming technology today.
Furthermore, Netflix is expanding its advertising partnerships beyond Microsoft, now including Google, The Trade Desk, and Magnite.
This announcement coincides with Netflix’s plans to venture further into live events. After securing the streaming rights for NFL games on Christmas Day, Netflix is adding more live content. This includes several live comedy specials, an upcoming boxing match between Jake Paul and Mike Tyson, and weekly WWE broadcasts.
This development comes as Netflix and its competitors are beginning to resemble traditional cable TV, with rising prices and bundled offerings.
