People wait in line to enter 'The Lab', a Netflix series experience of 'Stranger Things' in Madrid on June 2, 2022.
Beata Zawrzel/ | Nurfoto | Getty Images
The one from Netflix The cheaper, ad-supported tier has reached 70 million global monthly active users two years after launch.
The company said Tuesday that more than 50% of new signups are for ad-supported plans in countries that offer the option. Netflix said it continues to see “positive momentum and growth across all parts of the business,” adding that it has seen “steady progress among members across all countries.”
Netflix launched the option in November 2022 as one response to a slowdown in subscriber growth.
Lately, subscriber growth hasn't been a problem. Last month, Netflix reported that it added 5.1 million subscribers in the third quarter, beating Wall Street estimates. In total, Netflix has 282.7 million memberships across all price levels.
Starting next year, Netflix said it will no longer inform investors about its subscriber numbers as it shifts focus to revenue and other financial measures as performance indicators.
When Netflix launched its advertising platform two years ago, the company said Nielsen would rate its content.
Netflix announced in May that it would air two National Football League games on Christmas Day this year as part of a three-year deal. On Tuesday it said it had sold out of its ad inventory for the two live games.
Netflix also said it has enlisted FanDuel and Verizon as advertisers for the games. FanDuel will be the exclusive pregame sportsbook betting partner, Netflix said, and will have a sponsored in-show feature.
For their streaming options, media companies have focused on ad-supported strategies that lure customers with cheaper subscriptions and also provide advertising revenue that can help the streaming companies become profitable. While the advertising market has been sluggish for traditional TV, it has grown for streaming and digital companies.
Netflix offered its last update to its ad-supported tier in May, when it said it reached 40 million global monthly active users, nearly doubling the number it shared in January. That announcement came during Upfronts, when media companies make their pitches to advertisers.
Netflix also announced in May that it would launch its own advertising platform, ending its partnership with Microsoft on that technology. It has rolled out the platform in Canada and plans to launch it in the US by the end of the second quarter of next year. It plans to make the platform live everywhere by the end of 2025.
