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Netflix says ad-supported tier has 94 million users

Price increases and an aggressive move to boot freeloaders from its platform has made the cheaper, ad-supported tier of Netflix more attractive to certain customers.

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mkeys@thedesk.net

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The Netflix startup screen appears on a laptop computer. (Photo by Jade87 via Pixabay, Graphic by The Desk)

Netflix executives on Wednesday said the number of subscribers using its cheaper, advertisement-supported plan has grown to 94 million monthly active users.

The company stopped reporting global subscriber counts in April, and offers irregular updates on the number of customers who are using its ad-supported tier compared to its more-expensive, premium plans.

Last November, Netflix said the number of customesr watching content with ads was 70 million.

“When you compare us to our competitors, attention starts higher and ends much higher,” Amy Reinhard, the President of Advertising at Netflix, said in a statement. “Even more impressive, members pay as much attention to mid-roll ads as they do to the shows and movies themselves.”

Advertising has become a bigger part of Netflix’s business, and the cheaper tier supported with ads has become more attractive to Netflix streamers due to regular price adjustments and the company’s recent decision to boot freeloaders from its platform.

Netflix with Ads costs around $8 per month in the U.S., while its premium, commercial-free tier starts at $18 per month. The company charges an extra $7 per month for the privilege of sharing a Netflix password with one other person.

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About the Author:

Matthew Keys

Matthew Keys is the award-winning founder and editor of TheDesk.net, an authoritative voice on broadcast and streaming TV, media and tech. With over ten years of experience, he's a recognized expert in broadcast, streaming, and digital media, with work featured in publications such as StreamTV Insider and Digital Content Next, and past roles at Thomson Reuters and Disney-ABC Television Group.