Proactive Investors - Netflix Inc (NASDAQ:NFLX, ETR:NFC) has delved into the rapid growth of its advertising-supported subscription service.
Some 40 million people globally are now on advert-supported subscriptions, the streaming giant said on Wednesday, almost double the 23 million on such plans in January.
This also compares to just five million this time last year after the offering was launched in November 2022 on the back of slowing subscriber growth.
Overall, the company said it had 270 million subscribers globally, of which 40% were on the cheaper deals in countries where advert-supported plans are offered.
Netflix announced an in-house advertising technology platform was to be launched by late-2025 on the back of the growth, ending its partnership with Microsoft Corp (NASDAQ:MSFT).
“We’re being incredibly strategic about how we present ads because we want our members to have a phenomenal experience,” advertising president Amy Reinhard said.
“We conduct deep consumer research to make sure we stay ahead of the competition, bringing opportunities that are better for members and better for brands.”
Citing Nielsen data, Netflix said over 70% of ad-supported members watched for longer than 10 hours a month, up 15% compared to the nearest competitor.
Some 183 billion hours were collectively watched on Netflix in 2023, the company added, with Nielsen finding it had more top-10 shows in the last three years than all rival services combined.