Netflix Ad-Supported Plan Hits 40 Million Active Users Globally

Netflix has announced a major milestone for its advertising strategy. The company’s lower-cost, ad-supported subscription tier now boasts over 40 million monthly active users globally. This growth has accelerated significantly since early 2023, revealing a strong consumer shift towards ad-supported streaming options.

This surge represents a major success for Netflix’s push into advertising. According to reports from Reuters, the company shared this new figure with its advertising partners.

A Rapidly Scaling Business Model

The ad-supported plan launched in November 2022. It started in just 12 countries as a test. The service was rolled out to gauge user interest in a cheaper, ad-funded model.

Growth was steady but exploded in 2024. The plan now operates in all major markets where Netflix is available. The company confirmed the 40 million user count in a recent presentation.

This tier now accounts for a significant portion of new sign-ups. In some markets, over 70% of new members choose the ad plan. The model is proving crucial for Netflix’s revenue diversification.

Why the Ad Tier is Succeeding

The primary driver is price sensitivity among consumers. The ad-supported plan is typically priced 30-50% lower than the standard ad-free tier. This appeals directly to budget-conscious viewers.

Another factor is Netflix’s strategic execution. The company integrated the ad platform seamlessly. They also ensured a limited ad load, with roughly four minutes of ads per hour of viewing.

Netflix also made the plan more attractive over time. They upgraded video quality to 1080p HD and allowed downloads for offline viewing. These features were initially missing at launch.

Impact on the Streaming Wars

This success pressures competitors like Disney+ and Warner Bros. Discovery. Other streamers also launched ad tiers but trail Netflix in user adoption. The scale of Netflix’s user base gives it a powerful advantage with advertisers.

The advertising revenue itself is becoming a meaningful income stream. Analysts suggest it could generate billions annually. This helps Netflix fund its massive content budget without relying solely on subscription hikes.

The model also helps reduce customer churn. The lower price point retains users who might otherwise cancel during economic downturns. It creates a more stable, diversified subscriber base for the long term.

Netflix’s ad-supported plan has undeniably reshaped the streaming landscape, proving that a hybrid model of subscriptions and advertising can attract millions. Its rapid growth to 40 million users signals a durable change in how audiences access premium content.

Thought you’d like to know

What does the Netflix ad-supported plan cost?

Pricing varies by country but is significantly lower than the standard plan. In the United States, the ad-supported tier costs $6.99 per month, compared to $15.49 for the standard ad-free plan.

Are there any limitations on the ad-supported plan?

Yes, a small percentage of films and TV series are unavailable due to licensing restrictions. The plan also does not currently offer spatial audio, a feature available on higher-priced tiers.

How many ads can viewers expect?

Netflix states viewers see an average of four minutes of ads per hour of content. Ad breaks are typically 15-30 seconds long and appear before and during shows and movies.

Can you download shows to watch offline on this plan?

Yes. Netflix added the download feature to its ad-supported plan in late 2023. This was a key upgrade that made the tier more competitive and user-friendly.

Is the video quality good on the ad tier?

Yes. The plan now streams in 1080p High Definition. This is a notable improvement from its initial launch, which was limited to 720p resolution.