Jamie Spencer
Netflix announced on Wednesday that its cheaper, ad-supported tier now boasts 94 million monthly active users. This marks an increase of more than 20 million users since the company’s last public count in November.
Ad-Supported Plan Growing Rapidly
Since the introduction of its ad-supported plan in November 2022, Netflix has continued to increase its reliance on advertising to boost the profitability of its streaming service. The ad-supported plan is priced at $7.99 per month, significantly lower than its ad-free alternative, which costs $17.99 per month.
Strong Engagement with Ads
Netflix’s president of advertising, Amy Reinhard, highlighted the success of the ad-supported plan, noting that the attention levels for mid-roll ads are just as high as for the shows and movies themselves. “When you compare us to our competitors, attention starts higher and ends much higher,” she said in a statement.
Targeting Younger Audiences
The ad-supported tier also has a particular appeal to younger viewers, with Netflix reporting that it reaches more 18- to 34-year-olds than any U.S. broadcast or cable network. This demographic has become a key target for streaming platforms looking to build profitable advertising models.
