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HomeTechNetflix's Recently Launched Ad Tier Now Has 5 Million Active Monthly Users

Netflix’s Recently Launched Ad Tier Now Has 5 Million Active Monthly Users


Netflix’s recently launched ad-supported tier reaches nearly 5 million active users per month, executives said on Wednesday in a pitch that emphasised the breadth of its programming to potential advertisers.

The streaming video pioneer launched a $7-per-month (roughly Rs. 500) option with commercials last November in 12 markets, including the US, as an alternative to ad-free plans that start at $10 (roughly Rs. 1,000) a month. It was designed to attract more customers and add a new revenue stream as competition for online viewers intensified.

On Wednesday, Netflix made its first presentation to advertisers at the annual ritual known as the upfronts, where networks aim to lock in ad commitments for upcoming shows. Walt Disney, Comcast and other companies also are vying for digital ad dollars.

Netflix executives stressed the company’s wide range of programming, from sci-fi hit Stranger Things to Korean drama Squid Game and upcoming action movie sequel Extraction 2.

“No other entertainment company aspires to create great movies and shows across so many genres in so many countries, and for such a broad, diverse audience,” said Bela Bajaria, chief content officer for Netflix.

Jeremi Gorman, Netflix’s president of worldwide advertising, said that global monthly active users had reached 5 million. Monthly active users count all adult profiles used on one account with ads. Children’s profiles do not run commercials.

Netflix reported 232.5 million paying subscribers around the world as of the end of March.

Executives said they wanted to work with advertisers to create new types of advertising that could only be done on a digital service. For instance, a 30-minute commercial could play out over several days, with a story unfolding each time a viewer watches a show on Netflix, co-Chief Executive Ted Sarandos said.

“You can’t do that in linear TV because people don’t live on one channel,” Sarandos said.

Netflix had planned to make the ad presentation live in New York but switched to a virtual event to avoid protests from striking members of the Writers Guild of America.

© Thomson Reuters 2023


Google I/O 2023 saw the search giant repeatedly tell us that it cares about AI, alongside the launch of its first foldable phone and Pixel-branded tablet. This year, the company is going to supercharge its apps, services, and Android operating system with AI technology. We discuss this and more on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.



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