Netflix’s Ad-Supported Play Surges to 94 Million Monthly Users

Netflix’s experiment with advertising has evolved into a cornerstone of its subscriber growth strategy, as the streaming leader revealed its ad-supported tier now claims 94 million monthly active users globally—a 34% jump since November 2023. The announcement came during the company’s annual upfront presentation to advertisers, showcasing both rapid adoption and Netflix’s ambitions as a new heavyweight in the digital ad marketplace, according to The Hollywood Reporter and Deadline.

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Launched in late 2022 at $7.99 per month, Netflix’s ad-supported plan targeted price-sensitive viewers and those open to brief interruptions in exchange for savings. Initial skepticism from Wall Street and Hollywood faded as the company’s offering outperformed rival platforms’ ad tiers. At last count, the ad-supported option made up 40% of all new sign-ups in available markets, as Netflix co-CEO Greg Peters revealed during the event reported by The Verge and The Wrap. This rapid expansion outpaces previous projections and signals growing consumer willingness to accept ads in streaming.

“Advertisers are a key part of our next decade,” Peters said, framing Netflix as not only a premier destination for consumers but increasingly for brands. The company highlighted its unique audience reach, particularly among “cord-nevers”—younger viewers less likely to subscribe to legacy TV or cable. CNBC notes that Netflix’s scale is now “comparable to top broadcast networks in weekly reach,” a milestone rarely achieved by digital newcomers.

To capitalize fully, Netflix outlined several enhancements for its ad platform, including new generative AI tools for creative production and the introduction of its own in-house ad tech stack. Deadline reported that these moves aim to provide greater transparency and efficiency for advertisers while reducing reliance on third-party technology partners. The rapid buildout mirrors the company’s historical approach: build internal capabilities to maintain control and drive innovation, as seen in its content recommendation algorithms and global distribution model.

The financial impact of the ad-supported tier is significant, though Netflix is careful not to cannibalize its premium tiers. While revenue per user on the ad-supported tier is rising and reportedly eclipses its basic, no-ads plan in some markets, most of Netflix’s revenue still stems from its traditional, higher-priced offerings. Advertising, however, is positioned to become a major profit engine as streaming competition intensifies and global markets mature.

According to Reuters, the company’s bullish outlook comes as investors seek new growth levers amid streaming saturation. Netflix’s shares have drawn positive sentiment from financial analysts, with JPMorgan maintaining an “overweight” rating and setting a price target of $1,150, citing the ad tier’s impressive momentum and untapped revenue potential, as referenced on Investing.com.

This milestone spotlights broader shifts in media consumption and advertising. As The Hollywood Reporter and Adweek observe, Netflix’s massive reach challenges the dominance of traditional TV advertising and could accelerate the migration of advertising dollars to digital platforms. Others in the streaming industry—Disney, Warner Bros. Discovery, and Comcast’s Peacock—are also betting on hybrid, ad-supported offerings, but none has achieved Netflix’s scale or engagement.

Yet challenges remain. Netflix must navigate privacy expectations, ad load tolerance, and creative standards to maintain its premium brand reputation. The company’s coming months will test whether it can expand the ad-supported tier without eroding the value proposition for premium subscribers or alienating core audiences.

Still, as Netflix’s 94 million ad-tier milestone demonstrates, the streaming giant is again rewriting the rules of entertainment—and advertising—on its own terms.