Netflix's monthly active users on ad-supported plans grow eightfold in one year

It has been revealed that the number of monthly active users of Netflix's ad-supported plan has reached 40 million as of May 15, 2024. Netflix's ad-supported plan seems to have been steadily increasing its subscriber base since its launch in November 2022.

Netflix Upfront 2024: The Year of Growth and Momentum - About Netflix

Netflix Hits 40M Monthly Active Users, Up From 5M A Year Ago

Netflix ad tier has 40 million users

According to Netflix, the number of monthly active users of Netflix ad-supported plans has increased from 5 million to 40 million in one year. Looking only at countries that offer ad-supported plans, 40% of all subscribers choose the ad-supported plan.

More than 70% of ad-supported subscribers watch more than 10 hours of content per month, 15 percentage points higher than Netflix's closest competitor, according to market research firm Nielsen.

In response to the growing demand and profitability of ad-supported plans, Netflix has also announced that it will launch its own advertising technology platform by 2025, which will enable advertisers to use new ways to buy, use, and measure advertising effectiveness.

In addition to its existing advertising partnership with Microsoft, the company has also formed new partnerships with The Trade Desk , Google's Display & Video 360 , and Magnite to operate programmatic advertising .

The range of programming offered has also been expanded, with a deal signed for Netflix to exclusively stream NFL (National Football League) games on Christmas Day in 2024, 2025, and 2026. According to a survey , NFL games accounted for a whopping 93% of the top 100 most-watched programs in the United States in 2023, so this deal is expected to have a major impact.

Netflix introduced its first ad-supported plan, 'Basic with Ads,' in November 2022. This plan allows content to be viewed at a maximum resolution of 720p and is the cheapest Netflix plan available for 790 yen per month, but it features an average of 4 to 5 minutes of 15- to 30-second ads per hour. In addition, like the existing 'Basic' plan, the number of devices that can be viewed simultaneously is limited to a maximum of one.

Netflix starts offering 'basic with ads' for 790 yen per month, 200 yen cheaper with ads - GIGAZIN

In April 2023, 'Basic with Ads' was changed to 'Standard with Ads,' and the maximum resolution was raised to 1080p while keeping the price the same. The number of devices that can be viewed simultaneously was also relaxed to a maximum of two. At the time, Netflix stated that 'revenues from the ad-supported plan exceeded those of the 'Standard' plan (one level higher than Basic),' suggesting that the ad-supported plan was a success.

In addition, new subscriptions to 'Basic' will be gradually stopped after July 2023. It will be completely abolished in some regions from January 2024, and subscribers will be forced to switch to other plans one by one. At the time of writing, there are three Netflix plans available for new subscriptions: 'Premium', 'Standard', and 'Standard with Ads'.

in Web Service, Posted by log1p_kr