Netflix Ad Gamble Pays Off: 70 Million Viewers Now Watching with Commercials
The foray into ad-supported streaming by Netflix is proving successful, with the company announcing a staggering 70 million viewers tuning in with commercials each month – nearly double the number from May 2024.
Ad viewership is rising significantly, and more than half of new subscribers in regions with an ad-supported tier are choosing this option. Amy Reinhard, Netflix’s president of advertising, attributes this growth to “steady progress” across all 12 countries where the plan is available.
This shift marks a significant change for Netflix, which for years prided itself as an ad-free alternative to traditional television. However, facing subscriber losses in 2022, they launched a lower-priced ad-supported plan to attract cost-conscious viewers. This tactic appears to be working, with a substantial increase in ad-supported users compared to the 40 million reported in May.
While still dwarfed by giants like Amazon, who charge more for ad-free access, Netflix is steadily solidifying its ad business. Similarly to competitors, Netflix is also venturing into live programming – notably the NFL and WWE – which exposes all viewers to commercials, creating even more advertising opportunities.
This strategy seems to be bearing fruit, with Netflix selling out all in-game ad inventory for its two Christmas Day NFL broadcasts. Major brands like FanDuel and Verizon have secured sponsorships offering unique features and segments within the games.
Following the Christmas Day excitement, Netflix will release the much-anticipated second season of “Squid Game,” with multiple advertisers across the 12 ad-supported territories. Kia Corp, for example, will be prominently featured in South Korea.
Overall, Netflix’s ad gamble appears to be a winning bet, attracting both cost-conscious viewers and major advertisers.
