Netflix keeps getting more expensive, and that’s pushing more users to its ad tier. Today alongside touting booming ad-tier subscriptions, Netflix also announced that ads will be expanding to more places in its app.
A few years back, Netflix famously rejected the idea of an ad tier. But then the company changed its mind, and no doubt due to continued price hikes, a large share of users are now opting for that more affordable ad plan.
Netflix revealed today during its upfront presentation that over 250 million people around the globe are using its ads plan monthly. That’s up significantly from the 94 million this time last year.
But the streamer has bigger ad plans than just boosting its base of ad-tier subscribers.
Per The Verge, Netflix announced that ads will expand in the year ahead in two additional ways:
These changes aim to boost Netflix’s ad revenue even further, with subscriber growth no longer the success story it historically has been for the company.
Netflix remains the most successful streaming service around the world, but market saturation has slowed its growth. Now that the proposed Warner Bros. Discovery acquisition isn’t happening, increasing ad revenue may become more central to the company’s Wall Street narrative.
Meanwhile, Apple TV remains the only major streaming service that doesn’t yet offer an ad tier. And while Eddy Cue won’t rule out ads happening in the future, I suspect nothing will change until the current subscription price goes up.
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