Netflix's Ad-Supported Tier Surges to 40 Million Users: In-House Tech Platform and Brand Partnerships Ahead

New York, New York, USA United States of America
Energy drink company Celsius became the first presenting sponsor for Jake Paul versus Mike Tyson's event on Netflix
Netflix plans to bring its advertising technology platform in-house
Netflix's ad-supported tier has reached 40 million monthly active users
Netflix's Ad-Supported Tier Surges to 40 Million Users: In-House Tech Platform and Brand Partnerships Ahead

Netflix reported a significant milestone in its advertising business during its Upfront presentation to advertisers on May 15, 2024. The company announced that its ad-supported tier has reached an impressive 40 million monthly active users, nearly doubling the previous count of 23 million from January. This growth represents over 40% of all new sign-ups in markets where the ad plan is available.

Netflix also revealed plans to bring its advertising technology platform in-house, marking a shift from its previous exclusive partnership with Microsoft. The tech giant will remain as a programmatic advertising partner but will be joined by other ad tech companies such as The Trade Desk, Google Display & Video 360, and Magnite.

The streaming giant aims to launch its in-house ad tech platform in Canada later this year and plans to roll it out in the US by the end of Q2 2025. This move will give advertisers new ways to buy ads and measure their impact.

Netflix continues to leverage live events for brand partnerships and potential product placements. Energy drink company Celsius became the first presenting sponsor for Jake Paul versus Mike Tyson's event, which is set to stream on Netflix. Other brand partners will also be featured throughout the broadcast, with more product placements expected in the future.

The streaming giant has been gradually nudging its users towards its ad-supported tier by hiking prices on ad-free plans. Despite this shift, users of Netflix's ad-free tiers will still have some exposure to sponsors. For instance, Celsius signed on as the presenting sponsor for the Jake Paul-Mike Tyson boxing match, with branding inside the ring and featured placements throughout the broadcast.



Confidence

91%

Doubts
  • Is the number of new sign-ups solely due to the availability of the ad plan?
  • What percentage of Netflix's total user base is on its ad-supported tier?

Sources

99%

  • Unique Points
    • Netflix’s advertising tier has reached 40 million monthly active users.
    • Netflix President of Advertising Amy Reinhard mentioned that 40% of all sign-ups come from the ads plan in countries where it is available.
    • The ad-supported plan costs $7 a month and is cheaper for an account holder to sign up to a new ad-supported account rather than pay to share their password.
    • Netflix announced partnership with Microsoft to help ramp up advertising capability.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (95%)
    The article contains some inflammatory rhetoric and appeals to authority but no formal logical fallacies. The author states that Netflix's advertising tier has nearly doubled in size since the start of 2024, reaching 40 million monthly active users around the world. This is a claim about a specific number which could be considered an appeal to authority as it comes from Netflix's own data, but it doesn't directly involve a logical fallacy. The author also mentions that 40% of all signups now come from the ads plan in countries where it is available, and this is presented as a fact without providing any contrasting statistics or opinions. This could be seen as inflammatory rhetoric, but it doesn't meet the criteria for a formal fallacy. The author quotes Netflix President of Advertising Amy Reinhard and Chief Content Officer Bela Bajaria, giving them authority on the topic but not directly involving any logical fallacies in their quoted statements.
    • .Netflix’s 18-month-old advertising tier has nearly doubled in size since the start of 2024, reaching 40 million monthly active users around the world.
    • 40% of all signups now come from the ads plan in countries where it is available.
    • Earlier Wednesday, Netflix and the NFL announced that streaming giant would carry two Christmas Day games this season, and at least one holiday contest in two seasons after that.
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

98%

  • Unique Points
    • Netflix’s ad-supported tier has 40 million global monthly active users.
    • Netflix reached a deal to stream two National Football League games on Christmas Day this year and at least one matchup in both 2025 and 2026.
    • Netflix generates substantial profit and free cash flow and no longer provides quarterly subscriber number updates.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (95%)
    The article contains an appeal to authority when it states 'Disney executives recently referred to Netflix as the ’gold standard’ of streaming.' This statement is not a logical conclusion drawn by the authors, but rather an assertion based on the opinions of others. However, since this is the only fallacy found and it does not significantly impact the overall content or credibility of the article, I am scoring it at 95.
    • Disney executives recently referred to Netflix as the ’gold standard’ of streaming.
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

98%

  • Unique Points
    • Netflix’s ad-supported tier has reached 40 million active users
    • Netflix continues to leverage live events for brand partnerships and potential product placements
    • Energy drink company, Celsius, will be the first presenting sponsor for Jake Paul versus Mike Tyson event streaming on Netflix
  • Accuracy
    • ]Netflix advertising-supported subscribers watch more than 10 hours of programming a month[
    • More than 70% of Netflix ad-supported subscribers watch for more than 10 hours a month
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

96%

  • Unique Points
    • Netflix’s advertising-supported tier has 40 million monthly active users.
    • Netflix is building an in-house advertising technology platform.
    • Microsoft was previously Netflix’s exclusive global ad tech partner, but this is changing.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (80%)
    The article contains selective reporting as Netflix is only sharing the number of monthly active users for its advertising-supported tier and not disclosing the total number of subscribers. Additionally, there is editorializing in the statement 'Netflix says that it had hit the 40 million MAU number.' which implies approval or endorsement from the author.
    • Netflix says that it had hit the 40 million MAU number.
    • Over 40 percent of new signups are for the ads plan, suggesting that it is growing at a rapid pace.
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

100%

  • Unique Points
    • Netflix has 40 million monthly active users for its advertising-supported subscription plan.
    • Netflix plans to launch an in-house ad technology platform to support its growing ad business.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication