Netflix’s ad-supported viewership doubles to 70M monthly

Netflix has announced that 70 million viewers are now watching its content with advertising each month, a nearly twofold increase from May.

According to a statement from Amy Reinhard, Netflix’s president of advertising, more than half of new subscribers in countries where the ad-supported plan is offered are choosing this option. This growth, marked as “steady progress” by Reinhard, comes as Netflix seeks to expand advertising as a key revenue source alongside its paid subscription model.

Despite this growth, Netflix’s ad business remains relatively small compared to its competitors.

For years, Netflix operated as an ad-free service, shifting its strategy only after subscriber numbers dipped in 2022. As part of its advertising expansion, Netflix has introduced a variety of partnerships and live programming options, including NFL and WWE events, which generate new ad inventory.

The ad-supported plan is positioned as a less expensive alternative, appealing to cost-sensitive users.

With 282.7 million total subscribers by the end of the third quarter, the plan is currently available in 12 countries, including the U.S., Brazil and the U.K. Netflix’s approach contrasts with companies like Amazon, which recently increased fees for users who want to skip ads on their platform, pushing many to ad-included plans.

To attract advertisers, Netflix has incorporated various ad measurement partnerships to demonstrate campaign effectiveness. Recent metrics show higher engagement rates among Netflix ad-supported viewers than other connected TV services, with one U.S. campaign for an auto client showing lift in search and web visits. Additionally, a beauty campaign in Mexico saw a 30-point increase in brand recognition.

Netflix is preparing to roll out its in-house ad technology worldwide in 2025, with Canada already exclusively using this system, providing advertisers more control and data on campaign performance.

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The company also recently sold all available ad slots for two live NFL games on Christmas Day, featuring sponsors like FanDuel and Verizon. This event coincides with the release of “Squid Game” Season 2, which will feature several advertisers, including Kia in South Korea.

The company has also expanded its programmatic ad-buying capabilities in key markets, with plans to extend this service to Europe and Asia in 2025. As Netflix continues to build its ad-supported infrastructure, it aims to draw more subscribers and advertisers into its ecosystem.