Netflix’s ad-supported tier hits 70 million users
10:57 am Tuesday, November 12th, 2024
(Reuters) -Netflix said on Tuesday its ad-supported tier had reached 70 million monthly active users globally, nearly doubling from about six months earlier as customers seek more affordable options.
The plan, priced at $6.99 per month in the U.S., now accounts for more than half of all new Netflix sign-ups in regions where it is available. It reached 40 million global monthly active users in May.
Netflix’s cheapest plan without commercials costs $15.49 a month.
Some analysts have previously suggested Netflix should raise prices on its ad-free options to nudge customers towards the tier with commercials as it usually brings in more revenue per user.
Netflix does not offer details on the ad-supported plan’s financial performance and does not expect it to become a primary driver of growth until 2026. The tier has been priced the same since its launch in late 2022.
The company also said on Tuesday it had signed FanDuel on as an exclusive pre-game sports betting partner for its Christmas Day National Football League (NFL) games.
“This custom segment will include Netflix Christmas Gameday talent, offering analysis and predictions aligned to FanDuel’s wagering odds for the games,” the company said.
All available in-game ad inventory for the two live NFL games had sold out and Netflix has partnered with advertisers including Verizon Communications.
The company also said Canada had become the first country operating solely on Netflix’s ad tech. It is aiming to roll out the tech globally throughout 2025.
Shares of Netflix were up 1.1% in early trading.
(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Tasim Zahid)
