"The streaming giant said Wednesday it now reaches more than 190 million monthly active viewers. The company defines MAVs as subscribers watching at least one minute of ads on Netflix per month, multiplied by how many people are watching in a given household. The household numbers are from Netflix's own first-party research. Netflix's previous update on its ad tier came last May, when the company said it had grown to 94 million monthly active users."
"The MAU metric is widely used across ad-supported streaming, though there is debate in industry circles about how accurately it captures the ads being watched, as opposed to programming. In Netflix's case, MAUs were tied to account profiles, which the company said undercounted co-viewing, an especially meaningful factor when it comes to live events. "Our move to viewers means we can give a more comprehensive count of how many people are actually on the couch, enjoying our can't-miss series, films, games and live events with friends and family," the company explained in a blog post."
"Netflix announced it was reversing its longtime stance against advertising in the spring of 2022, at the same time the company was enduring a rocky stretch as the Covid subscriber boost waned and competition increased. In just a few months, via a partnership with Microsoft, the streaming leader rolled out an ad tier and began interacting with brands. The effort has scaled dramatically since, with live programming like WWE Raw, NFL games on Christmas Day and other events creating more opportunity for ads. Price-sensitive customers have also adopted the $9-a-month ad tier as prices keep rising across the streaming landscape."
Netflix now measures ad-tier reach using monthly active viewers (MAVs), defined as subscribers who watch at least one minute of ads per month multiplied by household viewers, and reports over 190 million MAVs. The previous MAU-based update reported 94 million monthly active users and undercounted co-viewing because MAUs tied to account profiles missed multiple viewers in a household. The ad tier launched after a 2022 reversal on advertising and a Microsoft partnership. Live programming and a $9 ad tier have driven adoption, thousands of advertisers, and a move to Netflix's own ad-tech platform.
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