Six months after its launch, Netflix Inc.’s ad-supported tier has nearly 5 million monthly active users globally, the streaming giant said Wednesday.
In a virtual upfront presentation to advertisers, Netflix co-Chief Executive Greg Peters said the member base of the ad tier has “more than doubled” since early this year. The ad plan launched in the U.S. in November.
Netflix has about 232.5 million global subscribers. Monthly active users is a different metric than paid subscribers, and Netflix did not reveal the exact number of subscribers to its $7-a-month, ad-supported tier on Wednesday. The term “active users” can also include multiple people sharing the same account.
Peters said more than a quarter of new subscribers are choosing the ad-supported plan in countries where it is available, and their engagement is comparable with ad-free subscribers.
“The signals are promising: engagement on our ads plan is similar to our comparable non-ads plans,” Peters said. “That’s critical because it all starts and ends with consumers.”
Netflix famously resisted commercials for years, before changing gears last year amid stalling growth and a new push toward profitability.
“We have a long way to go to build scale in advertising,” co-CEO Ted Sarandos said Wednesday, but he said he welcomed the challenge and looks forward to the chance to “build something together” with advertisers.
Netflix also said 80% of those on the ad-supported tier watch on their TV, as opposed to a mobile device, and the median age is 34, with 70% of ad-plan members between the ages of 18 and 49.
Netflix shares
NFLX,
are up 15% year to date and have jumped 92% over the past 12 months, compared to the S&P 500’s
SPX,
8% gain in 2023 and 6% advance over the past year.
This story originally appeared on Marketwatch
