One of the big streaming changes in the past year was the introduction of a Netflix with ads plan. Like so many other services, Netflix has started embracing ads. Of course, with Netflix being as big as it is, and having been around for as long as it has, the introduction of an ad-supported tier was more notable than usual.
The change officially took place in November with the launch of the Basic with ads plan. By April, the plan had already encountered its first rebrand and is now known as the Standard with ads plan. Either way, there had been some concern that subscribers were not too keen on the new tier, even though it is now the cheapest way to watch Netflix.
According to Netflix, however, its ad-supported plan is making steady progress. The company today confirmed that its ad-supported plan attracted almost five million monthly active users globally in its first six months. It also seems as though the momentum around the ad-supported plan is continuing to grow.
For example, Netflix also said that its ads member base has more than doubled since early this year. In addition, more than a quarter of new subscribers choose the ads plan when signing up in countries where it was available.
In terms of performance, and quoting TV advertising platform EDO, Netflix said that ad-supported viewers are 4.5x+ as likely to engage with an ad on Netflix than linear TV, and 4x+ as likely to engage with an ad on Netflix than other streaming services.
Other details that Netflix revealed about its ‘with ads’ plan include how 70% of ads plan members are aged 18 to 49, the global median age is 34, and almost 80% of ad-supported member’s viewing happens through a TV.
For reference, Netflix added another 1.75 million subscribers in the first quarter of 2023, taking the total number of subscribers up to 232.5 million globally.