Six months after its launch, Netflix Inc.s ad-supported tier has nearly 5 million monthly active users globally, the streaming giant said Wednesday.During a virtual upfront presentation to advertisers, Netflixs co-Chief Executive Greg Peters revealed that the member base of the ad tier has experienced a growth of over 100% since the beginning of this year. The ad plan was initially introduced in the United States in November.Netflix, with approximately 232.5 million global subscribers, did not disclose the specific number of subscribers for its $7-per-month ad-supported tier during its announcement on Wednesday. It is important to note that monthly active users is a distinct metric from paid subscribers, and the term “active users” can encompass multiple individuals who share the same account.Image: twitterAccording to Peters, over 25% of new subscribers in countries where the ad-supported plan is offered are opting for that plan, and their level of engagement is similar to that of subscribers who choose the ad-free option.Peters stated that the indications are positive, with engagement on the ad-supported plan being comparable to other non-ad plans. He emphasised the significance of consumer satisfaction as the driving force behind these decisions.Netflix, known for its previous resistance to commercials, made a strategic shift last year in response to stagnant growth and a renewed focus on profitability.On Wednesday, co-CEO Ted Sarandos acknowledged that there is still a significant journey ahead to establish a substantial presence in advertising. However, he expressed enthusiasm for the challenge and eagerly anticipated collaborating with advertisers to create something remarkable together.Netflix also revealed that 80% of users on the ad-supported tier primarily watch content on their televisions rather than on mobile devices. The median age of subscribers in the ad plan is 34, with 70% falling within the 18-49 age bracket.Netflixs stock, with ticker symbol NFLX, has experienced a 15% increase year-to-date and has surged by 92% over the past 12 months. In comparison, the S&P 500 has recorded an 8% gain in 2023 and a 6% rise over the previous year.
