Netflix Ad Tier Hits 94 Million Monthly Active Users

Netflix said Wednesday its ad-supported streaming plan now has 94 million monthly active users, reflecting an increase of more than 20 million since the company last shared figures in November.

The growth marks a significant milestone for the streaming giant, which introduced its cheaper, ad-backed plan in November 2022. The service costs $7.99 per month, compared to $17.99 for its least expensive ad-free tier.

Netflix said the ad-supported tier has become a key component in its broader strategy to improve profitability and attract budget-conscious viewers.

The company also said the plan now reaches more 18- to 34-year-olds than any U.S. broadcast or cable network, citing strong engagement among younger audiences.

Netflix President of Advertising Amy Reinhard said viewers are highly engaged with advertising content. “When you compare us to our competitors, attention starts higher and ends much higher,” Reinhard said in a statement. “Even more impressive, members pay as much attention to mid-roll ads as they do to the shows and movies themselves.”

The figures come as Netflix and other major streaming platforms increasingly lean on advertising to bolster revenue. Competitors such as Disney+, Hulu, and Max have also rolled out or expanded ad-supported offerings.

Netflix shares were down slightly in after-hours trading, falling 0.09%.