Netflix said on Wednesday its ad-supported tier has reached 40 million global monthly active users, from 5 million a year earlier, a sign that its push to attract new users with the cheaper plan is paying off.
The jump comes at a time when streaming companies are facing stiff competition and introducing bundles with their rivals to retain subscribers, Reuters reported.
Netflix, which launched the ad-supported plan in November 2022, said that 40 percent of all sign-ups come from those plans in the countries where they are available.
In the fourth quarter, the majority of gross subscriber additions for the streaming industry came from ad-supported plans for the first time, data from research firm Antenna showed earlier this week.
Netflix also said it will launch an in-house advertising technology platform by the end of 2025, in a bid to offer clients new ways to buy ads and better engage with users.
The company said it will team up with Trade Desk, Google Display & Video 360, and ad-tech firm Magnite which will join Microsoft to accelerate automated ad buying.
Netflix‘s ad-tier plan costs $6.99 per month, compared with monthly plans of $9.99 from Warner Bros Discovery’s streaming service Max and $7.99 for Walt Disney’s Disney+.
Last month, Comcast-owned streaming service Peacock said it would raise the prices of its plans, which would take its ad-supported plan to $7.99 per month.
Earlier on Wednesday, Netflix said it would stream two National Football League games on Christmas Day this year, doubling down on efforts to add more live programming to its streaming service.