Netflix’s Ad-Supported Tier Reaches 40 Million Users, Marking Strategic Success

Netflix’s ad-supported tier has grown remarkably, with global monthly active users reaching 40 million. This milestone, announced on Wednesday, highlights the success of Netflix’s strategy to attract new subscribers through a more affordable plan amidst intense competition in the streaming industry. Launched in November 2022, Netflix’s ad-supported plan has rapidly gained traction, now accounting for 40% of all new sign-ups in eligible countries. Research by Antenna indicates that ad-supported plans became the leading source of new subscribers across the streaming sector in the fourth quarter, a first for the industry.

In addition to its pricing strategy, Netflix is diversifying its content offerings. The company plans to stream two National Football League (NFL) games on Christmas Day this year, emphasizing its commitment to integrating more live programming into its service. Netflix’s efforts to curb password sharing in various markets, including India, further support its goal of building scale and boosting revenue. The significant increase in ad-supported tier adoption showcases the company’s successful adaptation to market dynamics and its strategic focus on broadening its subscriber base while maintaining competitive pricing.