40 Million People Subscribe to Netflix's Ad-Supported Tier

[MacRumors]

Netflix's ad-supported streaming tier has 40 million global monthly active users, up 35 million from a year ago, Netflix said today at its Upfront advertising presentation. Netflix has 270 million total subscribers worldwide, so the majority of its users are still on the ad-free tiers.

Netflix resisted implementing an ad-supported tier for many years, but confirmed in 2022 that it had plans to implement a cheaper option in order to boost revenue. The Standard with ads plan launched in late 2022, and it has grown more popular as Netflix has increased the pricing of its ad-free tiers.

In the United States, the Standard with ads plan is priced at $6.99 per month for HD streaming on up to two devices at one time, with all but a "few movies and TV shows available." The basic ad-free plan is $15.49 per month, while the premium plan is $22.99 per month. Netflix's ad-supported plan does not include the option to download content for offline viewing, nor does it support spatial audio.

According to Netflix, more than 40 percent of all signups in the countries where the ad-supported plan is available are for the ads plan. More than 70 percent of Netflix's ad-supported members watch Netflix content for more than 10 hours per month, and Netflix says subscribers are twice as likely to respond to an ad compared to subscribers of other streaming services.

Since Netflix launched its ad-supported tier, it has partnered with Microsoft for ads, but in 2025, it will launch an in-house ad platform.

In addition to boosting revenue through a cheaper ad-supported option, Netflix has also cracked down on password sharing. After putting an end to multi-household account use, Netflix saw strong subscriber growth and an increase in revenue.

Article Link: 40 Million People Subscribe to Netflix's Ad-Supported Tier

 

[bLackjackj]

Having read the release, this was just a call to gain more advertisers. There was absolutely no mention of how many of these ad supported tier subscribers were once full paying subscribers.

How many full paying subscribers has Netflix lost?

 

[frownface]

This is classic en-shittification.

Ramp up standard tier pricing to breaking point & then introduce an ad supported tier at the old standard tier pricing points to move price sensitive customers and begin luring in advertising revenue.

They'll keep the ad tier at the low price for some years until a significant portion of subscribers move over and reach a critical mass for most/all advertisers to sign on and locked in.

Once that happens they'll start ramping up the pricing for the ad supported plans. You'll see a $15 ad supported plan within 5 years. I'm sure of it.

 

[Simgar988]

Having read the release, this was just an call to gain more advertisers. There was absolutely no mention of how many of this ad supported tier subscribers were once full paying subscribers.

How many full paying subscribers has Netflix lost?

They lost me 2 years ago. I had been a member since the dvd days.

 

[gaximus]

I’d rather not watch tv than pay to watch tv with ads.

 

[TechnoMonk]

I get free Netflix from Tmobile, rarely use it these days.

 

[HQuest]

Good for them, maybe; but I ain’t one. Got tired of all streaming services milking me and putting more ads on paid services - as if they did not had enough money already.

 

[HiVolt]

It's all gonna revert to full ads in a few years on these streaming services, there will be no option.

all this wonderful pay low fee for all this content and no annoying ads was a nice dream for a bit. but those shareholders gotta eat.

so it'll will all revert to being like cable.

 

[nutmac]

I am on the ad-supported plan, courtesy of T-Mobile.

I maybe an exception, but my household is watching far less Netflix as a result of ads. When given a choice of ad-free Apple TV+, Disney+, Hulu.... vs ad-supported Amazon Prime and Netlfix, we just gravitate toward ad-free to explore their programming first.

 

[blazerunner]

They only subscribe because they got you by the balls.

 

[AlexJaye]

The ad-supported price tier used to be their regular price they charged everyone back when Netflix was worth paying for.

 

[TVreporter]

Hasn’t hit Canada yet … I barely use Netflix and rely on Disney more.

Now one subscription I might pay is ad free YouTube - they’re endless and my oldest kid makes YouTube his main viewing (with me monitoring what he’s watching).

 

[bLackjackj]

I get free Netflix from Tmobile, rarely use it these days.

Its not FREE. It's simply price included in your monthly fee. A great marketing technique. TMobile aren't paying, you are. TMobile also receive a handsome commission every month that you stay connected.

 

[TechnoMonk]

Its not FREE. It's simply price included in your monthly fee. A great marketing technique. TMobile aren't paying, you are. TMobile also receive a handsome commission every month that you stay connected.

For the amount of data I use, and my family needs that’s the best and cheapest plan. I don’t care about perks, but it’s a nice bonus including free MLB/Hulu,AAA membership Apple TV included. Between my hotspot and roaming, everything is a bonus.

 

[dannyyankou]

No surprise with all the carrier deals. Verizon lets you get HBO and Netflix for $10 a month, which is a good deal.

 

[scupking]

I canceled all streaming services except YouTube premium this year. I have an antenna on my roof that picks up 70 stations and then I use the free streaming apps like Pluto tv. Also have Prime video with my Amazon prime subscription. If I want to watch a specific movie I will rent it.

 

[StoneJack]

I pay 22 dollars for their best plan and with Youtube its all I watch.
very happy btw might be in minority here.
Was very happy with Queen of Tears recently on Netflix.
Also stopped subscribing to AppleTV+ and Prime.

 

[TigerNike23]

They lost me 2 years ago. I had been a member since the dvd days.

Been about 7 months for me. When they announced the last price increase along with the mandating of 4 screens just to get 4K, that was it for me.

 

[toobravetosave]

ok revolutionary new idea, bear with me:

pay for ad supported programming most of which you don’t watch (bonus points if it’s bundled with your internet)

🤯

 

[N0credit]

Never post, but sorry, headlines like this are infuriating. It’s 40MM monthly active users (MAUs) not subscribers. They were late to the advertising game (love it or hate it) and now they’re trying to make a name for themselves. Wall street can’t get enough, but they make very little from advertising. It’s the media that helps portray them as the only streamer in town. Netflix will stop reporting sub count next quarter because they realized they’ve milked people for all they can. They will continue to show stupid metrics to hype wall street. The industry stopped reporting MAUs because it was a bogus number. Don’t feed into Netflix and their BS. Don’t give wall street more reason to cheer when they don’t even know what is being touted.

 

[TechnoMonk]

No surprise with all the carrier deals. Verizon lets you get HBO and Netflix for $10 a month, which is a good deal.

ATT fiber gives you free access to HBO/Max. I don’t subscribe to any streaming. For live Sports an Antenna works great, and I get all local Fox, CBS, NBC and ABC channels.

 

[frost_horizon]

Been a subscriber for years, but stopped using it more than a year ago. Since then never had a feeling that I’m missing something.

 

[vicviper789]

I quit watching all streaming services and started sticking the $150/mo into an IRA and reading books like an old man

 

[Sevendaymelee]

One step closer to what I said would happen ten years ago. Everyone gets tired of cable prices, cuts the cord, Netflix gets splintered apart into many other streaming platforms, prices all rise too high and then suddenly, we're all just doing the cable thing with ads, only over the internet and way more inconvenient. haha

 

[Sevendaymelee]

Been a subscriber for years, but stopped using it more than a year ago. Since then never had a feeling that I’m missing something.

It was awesome when it was $7.99 a month, and everything was on it. But not anymore.