Netflix has reportedly surpassed 70 million monthly active users around the world on its ad-supported tier, a milestone after two years since it launched in November 2022. The company made the announcement on 12 November 2024 as popularity for its more affordable option continues to grow amid efforts to address a slowdown in subscriber growth.
When Netflix revealed the ad-supported tier, it was framed as its strategic move to combat stagnating subscriber counts. This cheaper plan includes commercial interruptions. Since then, the model has picked up in large numbers: in countries where it’s launched, more than half of new sign-ups have chosen the ad-funded tier. The company is reporting “positive momentum” and continued growth across its global markets, indicating that ad-tier is resonating with users who are seeking more affordable ways to access its vast content library.
Netflix’s total subscriber count has also risen sharply, with the company increasing its subscriber base by 5.1 million in the third quarter of 2024—more than what Wall Street is optimistic. According to the most recent release, Netflix has 282.7 million memberships around the world from all price levels. This is part of its overarching plan for expanding revenues beyond mere subscription-based models.
In a shift toward greater transparency in financial performance, Netflix said that, starting in 2025, it will no longer report subscriber numbers.
Instead, the company will focus on revenue and other financial metrics as key performance indicators.
The ad-supported tier has also attracted significant advertising interest. Netflix recently announced that it had sold out its ad inventory for two live NFL games on Christmas Day, marking a successful partnership with the league. FanDuel and Verizon are among the advertisers participating in these broadcasts. FanDuel, in particular, will serve as the exclusive pregame sportsbook betting partner and will feature a sponsored segment within the shows.
Netflix’s ad-supported tier is growing during a period when other media companies are similarly embracing advertising models to drive profitability in the streaming space. Although the traditional TV ad market has been slow, the growth in the digital and streaming ad markets has had significant and robust upticks that will create new revenue streams for Netflix and its competitors.
In addition to ad sales, the company is also building its own advertising platform, having ended its partnership with Microsoft earlier this year. The platform has already launched in Canada, with plans to make the jump to the U.S. by mid-2025 and to other regions by the end of the same year.
