Netflix ad ambitions grow as low-cost plan surges
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Netflix ad ambitions grow as low-cost plan surges
"The streaming giant said it now has more than 190 million monthly active viewers watching ads, mainly through a plan that costs $7.99 a month. The lowest cost ad-free plan costs $17.99 a month. In May, Netflix said it had 94 million monthly active users watching ads through the cheaper plan. That translated to roughly 170 million monthly active viewers, the company said at the time."
"Netflix now defines monthly active viewers as customers who watched at least 1 minute of ads on Netflix per month. It then multiplies that by the estimated average number of people in a household. Previously, Netflix had measured monthly active users based on the number of Netflix profiles watching content with ads. The streamer said its previous measurement didn't illustrate all the people who were in the room watching."
""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,"wrote Amy Reinhard, Netflix's president of advertising, in a post on the streamer's website Wednesday. Netflix executives said the growth in ad viewers was in line with their expectations."
Netflix has more than 190 million monthly active viewers watching ads, primarily through its $7.99-a-month ad-supported plan. The lowest-cost ad-free plan costs $17.99 a month. The company changed its measurement methodology and now defines monthly active viewers as customers who watched at least one minute of ads per month, multiplied by the estimated average number of people in a household. Previously, measurement counted Netflix profiles watching ad-supported content. The previous metric did not capture all viewers physically in the room. Executives expressed satisfaction with current performance and see global opportunity to grow the ad-supported plan. The ad-supported tier launched in 2022 amid investor pressure to diversify revenue.
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