Netflix's ad-supported tier has 40 million global monthly active customers, the company announced on Wednesday.
This is nearly double the 23 million statistic released by the streaming behemoth in January.
Separately, Netflix said that it will build its own advertising platform and will no longer collaborate with Microsoft on that technology. The internet behemoth will remain a programmatic advertising partner.
Netflix launched the ad-supported option in November 2022 as part of a larger push to boost income despite sluggish subscriber growth. That plan includes last year's ban on password sharing.
According to the firm, 40% of all signups in nations with an ad tier are for the lower-cost plan. Netflix now has 270 million subscribers.
The monthly active ad-tier user data arrive within a month. After Netflix informed investors that it would no longer provide quarterly membership figure updates. The firm stated at the time that it was producing significant profits and free cash flow, and that membership numbers were not the main reason driving its expansion. It stated that the statistic lost importance once it began offering subscriptions at several pricing tiers.
The increase in ad-tier consumers occurs as linear TV viewership dwindle and established media businesses strive to establish a presence in the streaming space. Netflix has established itself as the industry leader, while many other businesses struggle to make their streaming systems viable.
Key competitors have much fewer customers than Netflix. In its first-quarter earnings report, Comcast stated its streaming platform, Peacock.Netflix will webcast Christmas Day National Football League games for the next three years, marking its first foray into live sports.
The streaming platform will air two games on Christmas Day this year, followed by at least one game in 2025 and 2026, the league announced Wednesday. The games will remain available on broadcast television in local team markets and on the NFL+ mobile app.
It is unknown how much Netflix paid for the privilege to stream the games.
Netflix has attracted enormous viewers with sports content, ranging from the documentary "Formula 1: Drive to Survive" to the "Quarterback" series about NFL signal callers. While the firm made significant inroads into live programming with an agreement to stream the WWE's "Raw" During a boxing match between Mike Tyson and Jake Paul, the firm stated that it has yet to find a successful live sports rights strategy.
"We have not seen a profit path to renting big sports," Netflix Co-CEO Ted Sarandos stated in December 2022.
"We're not anti-sports, we're just pro-profit," Sarandos stated.
Netflix will now stream games from the most-watched sports league in the United States, at a time when the company is attempting to increase earnings by boosting subscription costs, encouraging users to upgrade to an ad-tier membership, and limiting password sharing.
The games might make Netflix a big magnet for advertising. According to Sports Media Watch, the three Christmas Day NFL games had an average viewership of 28.68 million last year.
The streaming giant's moves into live events haven't been without troubles. Its live reunion ceremony for the blockbuster reality TV show "Love Is Blind" in April 2023 was marred by a technical glitch that caused the stream to be delayed for more than an hour, after which the show was no longer available.
The news comes as streamers throughout the industry express an increased interest in live sports content, notably the NFL.
In January, NBCUniversal's Peacock aired an NFL Wild Card game between the Kansas City Chiefs and the Miami Dolphins, marking the first time a postseason game was shown completely on a streaming platform. Amazon Prime Video has secured exclusive rights to an NFL playoff game for next season.
Amazon also negotiated a broadcast rights agreement with the NFL in 2021, where it committed to pay around $1 billion every year for exclusive Thursday Night Football rights for ten years, beginning with the 2023 season. The agreement was the first time a streaming service offered a whole game package entirely.
Netflix might be seeking to expand into basketball as well. Last year, CNBC reported that Netflix, Amazon, Apple, YouTube TV, and Comcast's NBCUniversal/Peacock had preliminary discussions with the National Basketball Association about potential media rights after the league's deal with Walt Disney and Warner Bros. Discovery expires after next season.
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