Entertainment Service

Ad-supported Netflix Reaches 1 million Monthly Active Users

It’s worth noting that Netflix has traditionally been ad-free, so this move to offer ads could be seen as a departure from their core value proposition. This is exciting news! It seems that Netflix wants to expand its customer base by offering an ad-supported tier. ์นด์ง€๋…ธ์‚ฌ์ดํŠธ

The fact that it has reached 1 million monthly active users is a good indication that there is a demand for this type of service. However, the ad-supported tier might cater to more budget-conscious customers who might not want to pay the higher subscription fees for the ad-free version.

It will be interesting to see how it plays out and if the advertising tier becomes a significant revenue stream for Netflix. It’s possible the move will help Netflix’s compete more effectively with other streaming services that offer ad-supported tiers like Hulu and Peacock.


According to data verified by Bloomberg “a month ago,” the ad-supported Netflix subscription reached 1 million monthly active video-on-demand users in January. These are active users, not subscribers, which means the count includes viewers on the same account.

After a challenging first quarter with low ad-supported video-on-demand (AVOD) adoption, in which Netflix failed to meet the expectations of its early advertisers. Bloomberg reports that Netflix is โ€‹โ€‹on track with its court hearing estimates.

Slow growth:

Netflix’s ad tier was hastily rolled out last year to reassure investors after more than a decade of opposing the platform’s ad serving. But while warming up to the new high has been slow, Netflix didn’t seem bothered by the poor early performance. It’s amazing that Netflix has an advertising layer.

The company set out to update and build an ad tech system from the ground up in less than a year. Teaming up with Microsoft to compete against a similar launch of Disney+. Although AVOD viewership continued to grow throughout 2022. Many feared that the new plan would cost Netflix long-term revenue as users switched from the more expensive tier to the new plan. ์˜จ๋ผ์ธ์นด์ง€๋…ธ์‚ฌ์ดํŠธ

But users accustomed to ad-free viewing have shown little interest. Instead, AVOD was the source of new user growth for Netflix. According to data from the analyst firm Antenna, this level corresponds to 19% of January’s new registrations. The figure of almost 20% and the milestone of one million viewers shows that this level, without being a decisive success, contributes to the incremental growth of Netflix.

Build trust:

When viewer expectations are met and the ball rolls, Netflix looks to the future of its advertising business and considers. Whether to operate alone or in partnership with Microsoft. To get an ad platform up and running quickly with no experience running an ad platform. Netflix was forced to look for a great partner to get things up and running.

But now, perhaps fueled by increased confidence in its advertising industry. Consulting ad tech experts on the cost of building or buying its advertising platform. Which could mean it’s partnership with Microsoft will be canceled if the deal falls in 2024 expires.

Still Potential Recession and higher interest rates make it more expensive to hire engineers. To develop an advertising platform than a decade of Netflix ad abstinence, and the same circumstances make acquisitions difficult. Additionally, thanks to its booming gaming industry, Netflix already has some expensive and drawn-out acquisitions in its portfolio.

Our Opinion:

Netflix has recovered from a bumpy rollout of a new subscription tier. But it’s still not the revenue stream the company is hoping for. If AVOD becomes a strong source of revenue and subscriptions for Netflix, it will take years to see any results.

Meanwhile, after a cautious initial approach, the increased confidence gives a glimpse into the company’s long-term plans. ๋ฐ”์นด๋ผ์‚ฌ์ดํŠธ

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