Netflix (NFLX) announced on Tuesday that its advertising-supported tier, which has now reached the two-year milestone, has experienced remarkable growth, achieving a notable 70 million global monthly active users. This figure marks a significant increase from the 40 million users reported during the company’s second Upfront presentation in May, illustrating the growing popularity of this subscription model.
Currently, the ad-supported plan is responsible for over 50% of all new Netflix sign-ups in markets where it is available, reflecting a shift in consumer preferences toward affordable viewing options.
Amy Reinhard, Netflix’s president of advertising, expressed enthusiasm about the ongoing progress, stating, “There has been continuous momentum over the last two years, but we’re just getting started and can’t wait to see what’s to come,” in a recent blog post.
Reinhard highlighted the impact of recent popular shows such as “Nobody Wants This,” “The Diplomat,” and “Monsters: The Erik and Lyle Menendez Story.” She also pointed to live streaming events, including the highly anticipated Jake Paul vs. Mike Tyson fight, as key contributors to increased audience engagement and conversation — a development that is highly attractive to advertisers.
However, it’s important to clarify that monthly active users (MAUs) differ from paying subscribers. Netflix has not disclosed specific subscriber numbers for the ad tier or its revenue generation to date. Furthermore, MAUs can include multiple users accessing the same account, creating variance in user figures.
This latest update arrives on the heels of Netflix’s impressive third-quarter financial results reported on October 17, which exceeded Wall Street’s expectations across all key metrics, propelling the company’s shares to record highs.
The stock has surged more than 60% since the beginning of the year, with analysts increasingly deeming Netflix the frontrunner in the competitive streaming wars.
Despite these successes, Netflix recently disclosed that year-over-year engagement levels have remained relatively stable — a situation that could pose challenges for future price increases and growth potential. Some financial analysts have expressed concerns over the company’s impressive valuation.
In a recent note to clients, MoffettNathanson analyst Robert Fishman expressed skepticism, stating, “With much of the subscriber growth seemingly representing improved monetization of an existing (and not growing) user base, we question whether the momentum can continue into next year.”
Fishman further reflected on the company’s stock valuation, implying it is exceedingly high, especially given Netflix’s own guidance suggesting a revenue slowdown into 2025. Last month, Netflix projected a revenue growth deceleration from 15% this year to a range of 11% to 13% in 2025.
In addition to its advertising tier’s growth update, the company revealed that it has completely sold out its in-game ad inventory for its two NFL live Christmas Day games. Netflix has also secured collaborations with several advertisers, including Verizon (VZ) and Flutter’s (FLUT) FanDuel, among others.
FanDuel is set to serve as the exclusive pregame sportsbook betting partner for the Christmas Day games, with all partners expected to broadcast traditional ad commercials throughout the live events.
**Interview with Amy Reinhard, President of Advertising at Netflix**
**Editor:** Thank you for joining us, Amy. Netflix’s advertising-supported tier has reached a significant milestone with 70 million global monthly active users. What do you attribute this remarkable growth to?
**Amy Reinhard:** Thanks for having me. We’re thrilled about reaching 70 million monthly active users! A few key factors contribute to this growth. First and foremost, there’s been a noticeable shift in consumer preferences towards more affordable viewing options. Our ad-supported plan has resonated with users seeking value while enjoying high-quality content. Additionally, successful shows and events, such as “Nobody Wants This,” “The Diplomat,” and the upcoming Jake Paul vs. Mike Tyson fight, have driven engagement and conversation, making our platform even more attractive for viewers.
**Editor:** Interesting! You mentioned that over 50% of new sign-ups are from the ad-supported plan. What does that tell you about the direction in which the market is heading?
**Amy Reinhard:** It signals a clear shift toward hybrid viewing experiences. Audiences are more open than ever to ad-supported models, particularly as prices for streaming services continue to rise. It’s an exciting time for us as we cater to diverse viewing preferences and adapt to the market’s evolving landscape.
**Editor:** You highlighted the impact of popular shows and live events. Can you share more about how these contribute to the success of the ad tier?
**Amy Reinhard:** Absolutely! Content is king, and our focus on producing high-quality shows that resonate with audiences has played a crucial role. Popular series generate buzz and discussions that translate into higher viewer engagement. Live events, like the anticipated fight, not only attract existing subscribers but also draw new viewers who might be reluctant to commit to a subscription without knowing the content. This elevated interest is something we believe advertisers find incredibly valuable, driving more ad partnerships and opportunities.
**Editor:** It’s clear that engagement is a priority for Netflix. As for the numbers, could you clarify the difference between monthly active users and paying subscribers for your ad tier?
**Amy Reinhard:** Sure! Monthly active users reflect the total number of individuals accessing our platform, which can include multiple users on shared accounts. Unfortunately, we haven’t disclosed the exact number of paying subscribers for the ad tier yet, but it’s important for us to emphasize that MAUs can represent a broader audience which engages with our content. We’re committed to transparency in how we share these metrics in the future.
**Editor:** Lastly, following Netflix’s strong third-quarter financial results, what’s next for your advertising strategy?
**Amy Reinhard:** We’re just getting started! Our focus moving forward will be on continuously enhancing viewer experiences and growing partnerships with advertisers. We’re dedicated to innovating our ad offerings and exploring new content strategies that keep our audiences engaged. The momentum we’ve built in the past two years sets a solid foundation as we look to the future, and we can’t wait to share more developments with you.
**Editor:** Thank you, Amy, for your insights. It’s an exciting time at Netflix!
**Amy Reinhard:** Thank you! It’s great to share our journey with you.
