People don’t hate ads, it seems. At least that’s the implication behind Netflix’s new revelation that its ad-supported tier now has 40 million monthly active users. That’s up 5 million from a year ago. At the moment, over 40% of all signups in countries where the ad-supported plan is available are signups to that plan.

Netflix's ad tier has 40 million users already

Not just that, but over 70% of those subscribing to the ads plan watch for more than 10 hours a month, which is 15% more than “the nearest competitor” according to Nielsen. This means Netflix subscribers are “around twice as likely to respond to an ad compared to other streaming services and linear TV”, the official press release on the matter states.

Netflix's ad tier has 40 million users already

Netflix is planning on launching an in-house ad tech platform by the end of 2025, which will give advertisers “new ways to buy, new insights to leverage, and new ways to measure impact”.

Bringing the ad tech in-house will let Netflix “power the ads plan with the same level of excellence that’s made Netflix the leader in streaming technology today”, according to Amy Reinhard, the company’s President of Advertising.

She continued to say: “We’re being incredibly strategic about how we present ads because we want our members to have a phenomenal experience. We conduct deep consumer research to make sure we stay ahead of the competition, bringing opportunities that are better for members and better for brands”.

According to Nielsen, in the last three years Netflix had more top 10 titles than every other streaming service combined.


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