Netflix's Ad-Supported Tier Reaches 70 Million Users

Netflix announced today that its ad-supported subscription plan has reached a significant milestone by reaching 70 million monthly active users worldwide. This represents a notable increase from the reported 40 million users in May. Priced at $6.99 per month in the U.S., the ad-supported plan now accounts for more than half of all new sign-ups for Netflix in the markets where it is offered.

The company's standard ad-free subscription currently costs $15.49 per month. Some analysts have suggested that Netflix may need to raise the prices of its ad-free plans to encourage users to opt for the ad-supported option, which can generate higher revenue per user; however, Netflix has maintained the same pricing for its ad-supported tier since its launch at the end of 2022.

Additionally, Netflix has shared that it does not provide specific financial details about the performance of its ad-supported plan and does not expect it to be a significant growth factor until 2026.

Alongside subscription updates, Netflix announced a new partnership with FanDuel. FanDuel will be the exclusive pre-game sports betting partner for Netflix's live National Football League (NFL) games on Christmas Day. The collaboration will include Netflix's Christmas Gameday talent lineup, which will offer analysis and predictions in line with FanDuel's betting odds.

The streaming giant also confirmed that all in-game ad slots for the two live NFL games are fully booked, with major advertisers such as NYSE:VZ (Verizon Communications) among the partnerships.

Furthermore, Netflix stated that Canada is the first country to fully utilize its exclusive advertising technology, and it plans to expand this technology globally throughout 2025.

Following these announcements, Netflix shares rose by 1.1% in early trading.