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Netflix’s Ad-Supported Tier Has Almost 5 Million Users

Posted May 18, 2023 | Music + Videos | Netflix | Windows

Netflix announced yesterday that the cheaper ad-supported tier it launched in November now has almost 5 million monthly active users. The company also said that the Netflix with ads user base “more than doubled” since early this year (via Hollywood Reporter)

This 5 million users number does include people who share the same Netflix account, and the exact number of subscribers for Netflix’s ad-supported plan isn’t known. However, Netflix announced earlier this month that it had a total of 232.5 million subscribers in Q1 2023.

During a virtual presentation yesterday, Netflix co-CEO Greg Peters said that the company’s ad-supported plan represents more than a quarter of new signups in countries where it’s available. The exec also said that Netflix is seeing engagement levels that are similar to those on its ad-free plans.

“It’s why, despite all the competition out there, Netflix is the most popular streaming service today. To be the one to watch, you need everyone watching. And that’s what sets Netflix apart,” Peters said.

Netflix CEO Reed Hastings admitted back in December that he regretted not launching an ad-supported plan earlier. Disney+ also launched a new ad-supported tier last year, but only in the US. The company announced during its FY2023 Q2 earnings call that the ad-supported plan will come to Europe by the end of the year.

Speaking of the ad experience on Netflix, Jeremi Gorman, the company’s president of worldwide advertising said that the streaming platform was focusing on providing a seamless experience to subscribers. “We treat our ads with the same care we treat our incredible content: serving them locally; seamlessly transitioning between shows and ads with no latency; and implementing industry-leading frequency caps with an ad load of four to five minutes per hour,” the exec said.

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