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Netflix’s Ad-Supported Tier Has Now Reached 40 Million Monthly Users
May 16, 2024
On Wednesday, Netflix said its more cost-effective, ad-supported tier has brought in 40 million global monthly active users. This is almost twice as much as the 23 million count the company shared at the start of this year.
The streaming giant also announced plans to introduce its own advertising platform, opting out of its previous collaboration with Microsoft for this technology. The tech company will continue its partnership as a programmatic advertising partner, but Netflix will also expand its network to incorporate other ad tech firms such as Magnite, The Trade Desk, and Google Display & Video 360.
Later in the year, the streaming company intends to start testing its ad tech platform in Canada and aims to launch in the U.S. by the end of next year’s second quarter. It plans to have the platform operational worldwide by the end of 2025.
For the second time, the company gathered with its media counterparts yesterday to present its Upfront presentation to secure advertising for its platform.
The company said earlier on Wednesday that it has struck a deal to stream two National Football League games on Christmas Day this year. And there will be at least one game played on the same day in both 2025 and 2026. Netflix CEO Ted Sarandos said that the company has the opportunity to host one or two games in future years, with this year being a test run.
This represents Netflix’s initial big step into live sports following years of hesitance. Sports, especially the NFL, has demonstrated its role as a crucial element in maintaining the relevance of traditional TV, while also serving as a driver for streaming services.
Although specifics of the NFL deal were not revealed, people close to the matter said Netflix will pay roughly $75 million for each game.
Netflix will bring on its own announcers for the games and join forces with existing production companies. Sarandos expressed that he believed the NFL aligned well with the streamer’s event strategy, enabling Netflix to effectively dominate the day.
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