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Netflix's advertising layer already has 40 million users

Netflix's advertising layer already has 40 million users

People don't seem to hate ads. At least that's the implication behind Netflix's new announcement that its ad-supported tier now has 40 million monthly active users. This is 5 million more than last year. Currently, more than 40% of all subscriptions in countries where an ad-supported plan is available are subscriptions to that plan.

Not only that, more than 70% of ad plan subscribers watch ads for more than 10 hours per month, which is 15% more than the “nearest competitor,” according to Nielsen. This means that Netflix subscribers are “almost twice as likely to respond to advertising than other streaming services and linear TV,” the official press release on the matter says.

Netflix's advertising layer already has 40 million users

Netflix plans to launch an in-house ad tech platform by the end of 2025, which will give advertisers “new ways to buy, new insights to leverage, and new ways to measure impact.”

Bringing the ad technology in-house will allow Netflix to “support the ad plan with the same level of excellence that has made Netflix the leader in streaming technology today,” according to Amy Reinhard, the company’s head of advertising.

“We're incredibly strategic about how we deliver ads because we want our members to have an exceptional experience. We conduct deep consumer research to make sure we stay ahead of the competition, provide better opportunities for members and better for brands,” she continued.

According to Nielsen, in the past three years, Netflix has had more top 10 titles than any other streaming service combined.

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