Netflix (NFLX) has confirmed that its ad-based tier now has 40 million active users around the world. This represents an impressive increase from the 15 million users it reported in November last year and the 5 million from a year ago.
Netflix Ramps Up Its Ad-Supported Tier
These encouraging numbers were confirmed at the streaming giant’s second Upfront presentation for advertisers on Wednesday. While the ad plan isn’t offered in every region, it now makes up more than 40% of all new sign-ups in the markets where it’s available.
Netflix content chief Bela Bajaria stated that “our audiences are highly engaged – and by engaged I mean that they are choosing to spend their time watching Netflix”. This comment was backed up by the figures showing that 70% of Netflix users on the ad-supported platform spend more than 10 hours watching it each month, which puts it 15% above its nearest rival in the streaming market.
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As Netflix hasn’t revealed the number of subscribers for its ad tier, it’s impossible to work out how much revenue this generates for the company. Netflix also revealed a new technology platform that is designed to let its advertisers purchase ad space and measure the impact more easily.
The event gave the company a chance to announce an increased focus on live sporting events this year, starting with the Mick Tyson vs Jake Paul fight to be shown live in July. Netflix announced recently that it will be streaming a couple of American football games on Christmas Day this year, after tying up a three-season deal with the NFL, at a cost of under $150m per game.
