Netflix is crowing that its ad-supported tier now boasts 70 million users throughout the globe, as reported by Variety. The company announced 40 million users back in May, so this is some real growth. The streamer has been slowly ramping up its ad tier, going all the way back to 2022.
Amy Reinhard, president of advertising at Netflix, says that the company continues “to see steady progress across all countries’ member bases.” She also noted that over 50 percent of new Netflix sign-ups are for these ad-supported plans. The transformation of streaming into regular TV is nearly complete.
There’s one major potential caveat. The company released the aforementioned data regarding new sign-ups, which is impressive, but there isn’t any information regarding pre-existing customers. It’s highly possible a whole lot of people downgraded from a premium tier to an ad-supported tier.
I’m one of them. I don’t mind watching an ad or two as I mindlessly stuff food down my gullet while pseudo-watching an episode of The Diplomat or The Circle. In other words, there’s an argument to be made that the ad-supported tier could be eating into the more expensive offerings.
There’s also an argument to be made that this year’s growth spurt for the ad-supported tier could attract companies with deeper ad-spending budgets, thus making up the difference. Netflix is airing live NFL broadcasts on Christmas Day, and it says it has already sold out all available commercial inventory. The streamer is actually betting big on live streams, with wrestling events, cooking shows and talk shows all airing in the near future. The company’s recent forays into audience measurement and the ad-tech space should help entice sponsors for these events.
Netflix even has plans for “themed” advertisements with certain shows. The next season of Squid Game will include a three-part linked commercial by Kia. Nothing makes me want to buy a car more than a deadly dystopian bloodsport that seems closer and closer to the real world by the day.
This article originally appeared on Engadget at https://www.engadget.com/entertainment/tv-movies/netflixs-ad-tier-has-attracted-more-than-70-million-subscribers-162011582.html?src=rss
