Netflix's Ad-Supported Tier Sees Strong Growth, Reaching 70 Million Users
Netflix's ad-supported streaming tier has reached a significant milestone, with 70 million monthly active users, two years after its launch. This lower-priced plan has become a popular option, attracting over 50% of new sign-ups.
The service, launched in November 2022, initially aimed to combat slower subscriber growth. However, it has shown steady performance across all key regions, contributing to Netflix overcoming subscriber stagnation. In the third quarter, the company added 5.1 million new users, surpassing Wall Street's expectations and bringing its total membership to 282.7 million.
Netflix has also secured significant advertisers for its live National Football League (NFL) games on Christmas Day, including FanDuel and Verizon Communications. This move signals the company's strategic push into live sports broadcasting and ad-supported content.
Since May, Netflix has nearly doubled its ad-supported tier user count, demonstrating strong progress. The platform has also launched its advertising infrastructure in Canada, with plans for a U.S. rollout by mid-2025.
Analysts are optimistic about Netflix's outlook for 2025, citing strong quarterly results and multiple growth opportunities. They highlight the company's focus on expanding ads, gaming, and live events, as well as its scale as key strengths.
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