Netflix Announces Achievement Of 15 Million Monthly Active Users On Ad-Based Tier

Netflix announced on Wednesday November 1 that its ad-supported service rate has reached 15 million active users per month, a year after the streaming giant launched a cheaper plan to revive customer growth and revenue after a slowdown.

The company owned five million monthly users at advertising levels in May and has raised prices on ad-free options in a bid to push more subscribers to other levels, where ads help bring in more revenue per user.

Netflix raised subscription prices for several streaming plans in the United States, United Kingdom, and France last month, following additional subscribers in the third quarter of 9 million that surpassed Wall Street expectations of 6 million.

After rejecting ads over the years, Netflix changed its policy in April 2022 after losing subscribers in the first quarter of the year.

A month after the launch of Netflix's ad-based plan last year, Disney+ competitors have also launched a version of its ads in a bid to push their streaming business towards profit.

Streaming services such as HBO Max, Paramount+, and Peacock are also offering ad-based versions of their services, imitating a business model that has long supported the television business.

Amazon Prime Video will join its streaming competitor next year by launching ads and introducing subscriptions without ads at a higher price.

Netflix said during its third quarter result that its adoption of advertising plans, which cost 6.99 US dollars per month in the United States, continued to grow with membership rising by almost 70% in sequence. In countries where advertising-based plans are available, 30% of registration comes from advertising rates.