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TRENDING
Nov. 21, 2024
Netflix Hits 70 million Users
Two years after the launch of its Netflix with Ads tier, the streaming service has given an update on its progress.
Netflix's ad-supported tier has reached a significant
milestone, amassing 70 million monthly active users globally. This achievement
marks a substantial increase from the 40 million users reported just six months
ago. The ad-supported plan, introduced two years ago, now accounts for over 50%
of all new Netflix sign-ups in regions where it is available.
Priced at $6.99 per month in the U.S., the
ad-supported tier offers a more affordable option compared to Netflix's
cheapest ad-free plan, which costs $15.49 per month. This pricing strategy has
attracted a significant number of users seeking budget-friendly streaming
options. Despite its growing popularity, Netflix has not yet disclosed specific
financial performance details for the ad-supported plan, nor does it expect it
to become a primary driver of growth until 2026.
The success of the ad-supported tier is attributed to
several factors, including the continuous momentum in user engagement and the
introduction of popular shows and live streaming events. Recent hits like "Nobody
Wants This," "The Diplomat," and "Monsters: The Erik
and Lyle Menendez Story," along with live events such as the upcoming Jake
Paul vs. Mike Tyson fight, have contributed to the tier's growing user
base.
Netflix has also expanded its advertising
partnerships, signing deals with major brands like Verizon and FanDuel.
FanDuel, for instance, will be the exclusive pre-game sportsbook betting
partner for Netflix's Christmas Day NFL games. Additionally, Netflix has
partnered with Nielsen for live ratings of these games, ensuring better
accuracy through collaboration on first-party streaming data.
As Netflix continues to innovate and expand its
ad-supported offerings, it remains a formidable player in the streaming
industry. The company's ability to attract a large user base with its
affordable ad-supported plan demonstrates its adaptability and commitment to
providing diverse viewing options for its global audience.
