Netflix's bold move to introduce an ad-supported tier is paying off spectacularly, with the company revealing that this plan has now attracted 40 million monthly active users globally. This marks an impressive leap from just 5 million users a year ago. The surge in numbers highlights Netflix's successful strategy in luring budget-conscious viewers amid fierce competition in the streaming industry.
The ad-supported tier, which debuted in November 2022, is now responsible for 40% of all sign-ups in regions where it’s available. This significant uptake underscores the growing appeal of more affordable streaming options. It also reflects the broader trend in the industry, where ad-supported plans are increasingly becoming the go-to choice for new subscribers, as noted by research firm Antenna.
Bolstering its ad-supported strategy, Netflix has announced plans to roll out an in-house advertising technology platform by the end of 2025. This new platform aims to provide clients with innovative ways to purchase ads and engage more effectively with users. To boost this initiative, Netflix is collaborating with major players like Trade Desk, Google Display & Video 360, and Magnite, alongside its existing partnership with Microsoft.
The competitive pricing of Netflix's ad-supported tier, at $6.99 per month, positions it favorably against its rivals. Warner Bros Discovery's Max and Walt Disney's Disney+ offer similar plans at $9.99 and $7.99 per month, respectively. Meanwhile, Comcast's Peacock recently announced a price hike for its ad-supported plan, raising it to $7.99 per month. These pricing dynamics are a key battleground in the ongoing streaming wars.
In a bid to further enhance its content offerings, Netflix revealed it will stream two National Football League games on Christmas Day this year. This move underscores Netflix's commitment to expanding its live programming portfolio, aiming to attract and retain a diverse audience. By continually evolving its content and pricing strategies, Netflix is well-positioned to navigate the competitive landscape of the streaming industry.