The Netflix logo is displayed at its corporate offices in Los Angeles on Sept. 25, 2023.
Mario Tama | Getty Images
Netflix said Wednesday its cheaper, ad-supported tier has amassed 15 million global monthly active users.
That’s triple the most recent figure, disclosed in May, and notable growth for Netflix as it laps a year since rolling out the new subscription option.
Shares of Netflix traded up roughly 2% on Wednesday.
The streaming giant introduced its ad-supported plan alongside a password sharing crackdown in an effort to drive revenue amid slowing subscriber growth.
The move has proved fruitful so far: In the company’s third-quarter report, Netflix said it added 8.8 million subscribers, more than Wall Street expected, and that it expects a similar bump in subscriber growth in the fourth quarter.
Netflix has been looking to amp up its ad tier with new features for advertisers and users alike.
Newly instated President of Advertising Amy Reinhard said in a blog post Wednesday that advertisers can now choose to run 10-, 20-, and 60-second ads, in addition to the 15- and 30-second spots offered. The move will allow advertisers “around the world multiple formats to leverage,” Reinhard said.
Members of the ad tier can also expect some new features coming their way. Netflix said it will roll out higher 1080p streaming resolution for ad tier users in addition to 720p. Users will also be able to download movies and series to their devices starting at the end of this week.
In a push to appeal to binge watchers, beginning in the first quarter of 2024, Netflix will present an ad-free episode after users watch three consecutive episodes of a series.
This story originally appeared on CNBC
