Netflix's Ad-Supported Tier Boasts 15 Million Subscribers, Introduces Fewer Ads for Binge-Watchers

Netflix sees 70% increase in membership for its $6.99 per month ad-supported tier, with ad plan signups accounting for 30% in countries where available; binge-watchers to be rewarded with ad-free content from 2024.

Netflix's ad-supported tier, launched a year ago, has reached 15 million active users per month. The company has raised prices on its ad-free options to promote the ad-supported tier, helping to grow revenue.
In a bid to appeal to binge-watchers, from 2024, Netflix will offer an ad-free episode following three consecutive ad-supported episodes watched by a user. New ad lengths ranging from 10 to 60 seconds have also been introduced.
In markets where the ad-supported tier is available, 30% of new sign-ups chose this option. The adoption of the ad-supported plan has helped support Netflix's revenue growth.
The quality of video for ad-supported users will also increase from 720p to 1080p. Additionally, these users will have the ability to download their favorite series and movies for offline viewing.
Netflix's lower-cost ad tier has experienced high adoption rates despite competition from other platforms such as Disney+, HBO Max, Paramount+, and Peacock, which also offer ad-supported versions of their services.