Netflix Ad-Supported Tier Reaches 70 Million Users

(Reuters) – Netflix announced on Tuesday that its ad-supported tier has reached 70 million monthly active users globally, nearly doubling in just six months as consumers seek more affordable options.

The ad-supported plan, priced at $6.99 per month in the U.S., now constitutes over half of all new Netflix (NASDAQ:NFLX) sign-ups in regions where it is offered. It had just 40 million global monthly active users as of May.

By contrast, Netflix's least expensive ad-free plan costs $15.49 per month.

Some analysts have suggested Netflix should consider raising prices on its ad-free options to encourage customers to switch to the ad-supported tier, which generally generates more revenue per user.

Netflix has not disclosed specific financial performance details for the ad-supported plan and does not anticipate it will become a significant growth driver until 2026. The pricing for the tier has remained consistent since its launch in late 2022.

Additionally, on Tuesday, Netflix announced a partnership with FanDuel to serve as an exclusive pre-game sports betting partner for its Christmas Day NFL games. This segment will feature Netflix's Christmas Gameday talent, providing analysis and predictions aligned with FanDuel's wagering odds for the games.

All available in-game ad inventory for the two live NFL games has sold out, and Netflix has collaborated with advertisers including Verizon Communications (NYSE:VZ).

Moreover, Netflix has declared that Canada is the first country to operate solely on the company's ad technology, with plans for a global rollout by 2025.

In early trading, Netflix shares were up 1.1%.