Netflix reported that its ad-supported content is attracting 70 million viewers each month, a figure that has almost doubled since May.
Amy Reinhard, the president of advertising at Netflix, shared in a blog post on Tuesday that more than half of new subscribers are choosing the ad-supported plan in regions where it is offered. The company is experiencing consistent growth across all 12 countries with this advertising model.
Netflix aims to significantly boost its advertising revenue to supplement its subscription income, although its advertising sector remains relatively small compared to other industry players. The company had long marketed itself as a commercial-free alternative to traditional television, only incorporating ads after losing subscribers in 2022.
To appeal to budget-conscious viewers, Netflix has positioned its ad-supported plan as a more affordable option, contributing to steady user growth. The platform had 40 million active users on its ad plans in May, and by the end of the third quarter, it had reached a total of 282.7 million subscribers.
In contrast to competitors like Amazon.com Inc., which charges users more for ad-free viewing options, Netflix is focusing on expanding its ad-supported customer base.
The streaming giant is also investing in live content, including programming from the National Football League and World Wrestling Entertainment, which will provide advertising opportunities to a broader audience, thereby enhancing inventory for advertisers.
Netflix announced that it has sold out all advertising slots for two NFL games set to air on Christmas Day. Major sponsors for the event include FanDuel and Verizon Communications Inc., which will feature their own segments. Additionally, the day after Christmas marks the release of the much-anticipated second season of Squid Game, the hit South Korean survival drama, which will feature multiple advertisers across the 12 markets where Netflix runs its ad-supported services, with Kia Corp. being one of the sponsors in South Korea.
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