Netflix Reports That 15 Million People Use Its Ad-Tier Service

On Wednesday, Netflix announced that 15 million people worldwide are now active monthly users of its ad-supported tier.

Since launching the service a year ago, the corporation has actively encouraged customers to choose the advertising tier. The ad-tier remained at $6.99 per month when the business said last month that the price of its premium plan would be going up.

Among the many streamers aiming to increase their revenue via advertising is Netflix. Disney+ also increased the cost of all of its plans save the ad-tier, while Amazon intends to introduce advertisements to its Prime Video service in the upcoming year. Since consumers are being forced to reduce their spending due to the abundance of services and rising costs, advertisements offer a different avenue for income growth.

“These developments have significant ramifications for the larger TV industry,” says Jeremy Haft, chief revenue officer of Digital Remedy, a partner in performance media. “Streaming platforms, including Netflix, are coming up with creative ways to provide value to advertisers, which is changing the way marketers think about TV advertising opportunities.”

You need a sizable audience to make any kind of inroad in the advertising business. That’s probably the reason Netflix revealed the 15 million statistic today: to entice sponsors to collaborate with Netflix. This number is three times higher than the 5 million it claimed in May.

“We aim to provide more than just the standard products and tools that the industry has become accustomed to; we have achieved great strides in that direction in the past year. The company stated, “It’s to build something bigger and better than what exists today.”

A summary of the actions Netflix has done to enhance its status as a platform for advertisers was also provided in the statement. These actions include collaborating with Microsoft to improve its measurement capabilities, introducing new ad solutions, and expanding sponsorship options.

Netflix Reports That 15 Million People Use Its Ad-Tier Service

On Wednesday, Netflix announced that 15 million people worldwide are now active monthly users of its ad-supported tier.

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