Ads that appear in the middle of what you’re watching? Netflix’s controversial plan in the works

Launched in late 2022, Netflix’s ad-supported package has been a resounding success and now boasts 94 million global monthly active users as of May 2025.

This is a significant increase from 40 million in May 2024 and 70 million in November 2024.

A large proportion of new Netflix subscribers are opting for the ad-supported plan. In the fourth quarter of 2024, over 55% of sign-ups in ad-supported markets chose this tier. Some reports even indicate this figure was as high as 69% in the UK during that period.

The ad-supported tier is particularly successful in reaching younger audiences, with Netflix stating it has more 18-34-year-old viewers than any U.S. broadcast or cable network. This is highly valuable for advertisers.

Major brands have been lining up to partner with Netflix for advertising, including sponsorships for popular shows and even single-title sponsorships. This indicates strong confidence in the platform’s ability to reach and engage consumers.

‘Most engaged audience’

Amy Reinhard, Netflix’s president of advertising, said the streaming service has “the most engaged audience anywhere,” with subscribers on its ad-supported tier spending an average of 41 hours per month on the service.

The new ad formats are part of Netflix’s in-house advertising platform, which is now live in the US after also launching in Canada. It plans to bring the platform to all 12 countries with ad-supported plans by June. “The foundations of our ads business are in place,” Reinhard said. “And going forward, the pace of progress will be even faster.”

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