Netflix’s ad-supported streaming tier has reached 70 million monthly active users worldwide, marking significant growth for the service launched two years ago. The company reports more than half of new subscribers in markets offering the ad-supported option now choose this plan.
The streaming giant added 5.1 million new subscribers in the third quarter of 2024, exceeding analyst expectations and bringing total memberships to 282.7 million across all tiers. This growth comes as the company prepares to shift away from reporting subscriber numbers next year, focusing instead on revenue metrics.
Netflix continues expanding its advertising strategy through sports programming. The company recently secured a three-year agreement to stream two National Football League games on Christmas Day, with ad inventory already sold out. FanDuel signed on as the exclusive pregame sportsbook betting partner, joined by Verizon as another key advertiser.
The platform’s ad-supported membership has seen rapid adoption since May, when Netflix reported 40 million monthly active users. This growth aligns with broader industry trends as media companies increasingly turn to advertising revenue amid changes in traditional TV markets.
Netflix plans to launch its own advertising platform, moving away from its Microsoft partnership. The company will begin this transition in Canada, with U.S. implementation expected by the end of second quarter 2025 and global rollout by year-end.
This push into advertising represents a strategic pivot for Netflix, which introduced the ad-supported tier in November 2022 following a period of slower subscriber growth. The move reflects an industry-wide shift toward hybrid revenue models combining subscription and advertising income.
The strategy appears to be paying off as Netflix reports strong performance across its business segments. The company’s expansion into sports programming and advertising technology suggests continued evolution of its business model.
Other streaming services have followed similar paths, offering ad-supported options to attract price-conscious consumers while developing new revenue streams. This trend indicates a broader transformation in how streaming platforms approach monetization and content delivery.
