Netflix’s ad tier now has 40 million monthly active users

Netflix (NFLX) is making significant strides in its ad tier, with the company revealing that it now has 40 million global monthly active users, a substantial increase from the 15 million users reported just a few months ago. This marks a 35 million increase compared to the previous year, showcasing the growing popularity of Netflix’s ad-supported model.

The ads plan now represents over 40% of all Netflix sign-ups in the markets where it is offered, indicating a strong demand for this alternative subscription option. Netflix’s content chief, Bela Bajaria, highlighted the high level of engagement among users, emphasizing that they are actively choosing to spend their time watching Netflix.

Moreover, Netflix shared that over 70% of its ad-supported members watch for more than 10 hours a month, surpassing the engagement levels of its competitors. The company’s new in-house technology platform will provide advertisers with more options to buy ads and measure their impact, further enhancing the advertising experience on the platform.

In addition to these updates, Netflix announced its partnership with energy drink company Celsius as the presenting sponsor for the upcoming Jake Paul vs. Mike Tyson live event, which will stream on the platform in July. This move demonstrates Netflix’s commitment to leveraging live events to engage users and attract advertisers.

Furthermore, Netflix recently secured the streaming rights to two National Football League (NFL) games, signaling its entry into the live sports content arena. With a three-season deal in place, Netflix is poised to expand its ad business and create a compelling value proposition for advertisers. The company’s strategic moves in the ad space are drawing positive reactions from analysts, who see this as a significant opportunity for Netflix to diversify its revenue streams and enhance its competitive position in the market.