Netflix executives revealed that the streaming giant’s newly launched ad-supported plan now has nearly 5 million monthly active users.
The company first launched its $7 ‘’Basic with Ads’’ tier in November, which is now available in a total of 12 markets including the United States and the United Kingdom.
While the tier, which Netflix partnered with Microsoft for, was reportedly its least popular plan in its first month of launch, the company previously said that it expects it to lure 40 million viewers by the third quarter of this year, and account for at least 10% of its revenue in the future.
As reported by Reuters, during a presentation to advertisers, Netflix’s President of Worldwide Advertising Jeremi Gorman announced that the plan now has around 5 million monthly active users around the world, which includes all adult profiles used on one ad-supported account, but not children profiles since they don’t run advertisements.
As of the first quarter of 2023, Netflix has 232.5 million premium users in total.
Also Read: Netflix Revenue and Usage Statistics
During the virtual event, Netflix executives also announced the company’s plans to team up with advertisers to create innovative forms of advertising exclusive to digital platforms. For example, co-chief executive officer Ted Sarandos said that they could launch a 30-minute commercial over multiple days, with its story unfolding each time a user engages with a show on the streaming platform.
He added that such a campaign can’t be accomplished in linear TV since ‘’people don’t live on one channel’’.
The announcement comes nearly two months after ad tech companies DoubleVerify and Integral Ad Science (IAS) said they would offer quality measurement to Netflix advertisers.