Netflix has announced that 70 million viewers are now watching its content with advertising each month, a nearly twofold increase from May. This represents a significant milestone for the streaming giant's ad-supported plan, launched after a dip in subscriber numbers in 2022.
According to Amy Reinhard, Netflix’s president of advertising, “more than half of new subscribers in countries where the ad-supported plan is offered are choosing this option.” This growth, described by Reinhard as “steady progress,” underscores Netflix's commitment to advertising as a key revenue stream alongside its paid subscriptions.
While impressive, Netflix’s ad business remains relatively small compared to established competitors. However, the company is actively expanding its advertising capabilities. This includes forging partnerships, offering live programming (like NFL and WWE events) to generate more ad inventory, and offering a less expensive option appealing to budget-conscious viewers.
The ad-supported plan, currently available in 12 countries including the U.S., Brazil, and the U.K., serves 282.7 million total subscribers (as of the end of Q3). This contrasts with companies like Amazon, which recently increased fees for ad-free viewing, inadvertently pushing users toward ad-inclusive plans.
Netflix is investing in demonstrating the effectiveness of its advertising. Recent metrics show higher engagement rates among its ad-supported viewers compared to other connected TV services. One U.S. automotive campaign saw increased search and web traffic, while a beauty campaign in Mexico resulted in a 30-point increase in brand recognition.
Looking ahead, Netflix is rolling out its in-house ad technology worldwide in 2025 (Canada already uses it exclusively), offering advertisers greater control and data. The company recently sold all ad slots for two live NFL Christmas Day games, showcasing sponsors such as FanDuel and Verizon. This coincides with the release of "Squid Game" Season 2, which will also feature various advertisers, including Kia in South Korea. Further expansion of programmatic ad-buying capabilities is planned for Europe and Asia in 2025.