When Netflix announced that it would be offering a paid tier with ads to select countries back in 2022, some thought that the streaming giant would not get as many subscribers for an ad-supported tier. According to Netflix Upfront 2024, however, some subscribers don’t mind the ads after all–there are around 40 million monthly active users for Netflix’s ad-supported plan.
The report also revealed some interesting facts about Netflix’s advertising efforts: ad-supported subscribers have a higher household income and a median age of 37, and 70% of those ad-supported subscribers watch for more than 10 hours a month. Netflix even has bragging rights with its advertising efforts: According to findings by EDO Inc., “Netflix members are around twice as likely to respond to an advertisement on Netflix compared to other streaming services and linear TV.”
This further proves that Netflix is a force to beat when it comes to streaming platforms–especially with its dominance in the Philippines for the first quarter of 2024. Netflix has yet to launch an ad-supported tier in the country, but its reports indicate that there’s a possibility of that happening soon.
With this positive outlook, Netflix is also looking into building its ad tech platform by 2025 to leverage its dominance and influence when it comes to advertisements. “We’re being incredibly strategic about how we present ads because we want our members to have a phenomenal experience,” Netflix President of Advertising Amy Reinhard said.