Netflix’s ad tier hits 40 million users

Netflix’s expansion into an ad-supported model seems to be a hit. Today, at its 2024 upfront presentation, the streamer said that it now has 40 million monthly users on its ad-supported tier globally. That’s up from 23 million earlier in the year; it took six months for the option to hit 5 million users after it launched in 2022. As of April, the service had a total of 270 million subscribers across all tiers. Netflix also said that, in regions where ads are available, more than 40 percent of new users are signing up for the ad-supported tier.

As part of announcing the milestone, Netflix revealed that it’s planning to launch “an in-house advertising technology platform.” In a statement, Netflix’s president of advertising, Amy Reinhard, explained that “bringing our ad tech in-house will allow us to power the ads plan with the same level of excellence that’s made Netflix the leader in streaming technology today.” Additionally, while Netflix initially partnered with Microsoft as its “global advertising technology and sales partner,” it’s now adding Google, The Trade Desk, and Magnite to that list.

The news comes the same day that Netflix announced a further push into live events, after getting the streaming rights for NFL games on Christmas Day. This follows several live comedy specials and will soon be joined by a boxing match between Jake Paul and Mike Tyson and weekly WWE broadcasts. It also comes at a time when Netflix and its competitors have increasingly started to resemble the cable TV of old, through price hikes and bundles.