Video streaming platform, Netflix, said its ad-supported plan now has 40 million global monthly active users.
Netflix’s President of Advertising, Amy Reinhard, disclosed this on Wednesday in a presentation to advertisers. According to the company, shows significant growth from 5 million recorded a year ago.
He added that over 40% of all signups in the ads countries now come from the ads plan. This shows that the company’s move to attract new users with the cheaper ad-supported plan is paying off.
The growth comes amid stiff competition in the streaming business, forcing players to introduce different bundles to retain subscribers.
New technology for ads
Reinhard also announced that Netflix will launch an in-house advertising technology platform by the end of 2025 to give advertisers new ways to buy, new insights to leverage, and new ways to measure impact.
“This summer, Netflix will also expand its buying capabilities to include The Trade Desk, Google’s Display & Video 360, and Magnite who will join Microsoft as the main programmatic partners for advertisers,” said Reinhard.
According to the global audience measurement platform, Nielson, over 70% of Netflix’s ad-supported members watch for more than 10 hours a month — which is 15 percentage points higher than the nearest competitor. Nielson added that Netflix members also pay even more attention three hours into watching than they do when they first start.
What you should know
Meanwhile, Netflix’s co-CEO, Ted Sarandos, recently announced that the video-streaming company will start testing its ad-supported plans in other markets including Nigeria. The ad system will implement commercials expected to last between 15 and 30 seconds, playing both before and during videos.
The plans, already launched in various countries including the US, UK, and Canada, offer more affordable subscription options for viewers willing to watch commercials. However, they are yet to be introduced in Nigeria.
In Nigeria, Netflix recently reviewed its subscription price upward following a similar action in other markets. From April 1, 2024, the Standard Plan rose from N3,600 to N4,000, while the Premium Plan was upped from N4,400 to N5,000. The Mobile plan jumped from N1,200 to N1,600. However, the Basic remains at N2,900.
The pricing modifications followed Netflix’s global strategy to review subscription costs in various regions, enabling it to drive revenue and earnings.
This strategy combines periodic price reviews with an expansion of content offerings. Netflix had earlier adjusted prices in key global markets such as the United Kingdom, the United States, and France, where Basic and Premium Plans saw an increase in October 2023.
