Netflix's ad-supported tier has reached a significant milestone, now boasting 70 million monthly active users worldwide. This marks a substantial increase from the 40 million users reported in May 2024.

The ad-supported plan is priced at $7 per month in the U.S., and it now accounts for more than half of all new Netflix sign-ups in regions where it's available. 

This is not surprising, considering that there’s no way to subscribe to a lot of the streaming media platforms. It looks like people are subscribing ad-free to the ones they watch a lot, and then going ad-supported for others to manage subscription costs and get more platforms.

This surge suggests that viewers are increasingly opting for more affordable streaming options, even if it means encountering a few ads during their binge-watching sessions.

In response to this growth, Netflix is bringing its advertising technology in-house to provide advertisers with new ways to buy ads and measure their effectiveness. 

This move is expected to enhance the overall advertising experience on the platform.

Additionally, Netflix has entered into a partnership with FanDuel to feature sports betting segments during its NFL game broadcasts on Christmas Day, indicating a broader strategy to integrate live sports and related content into its streaming offerings.

While Netflix doesn't anticipate the ad-supported plan becoming a primary growth driver until 2026, the current trajectory suggests it's well on its way to playing a significant role in the company's future.