Netflix (NFLX.O) announced on Tuesday that its ad-supported tier has now reached 70 million monthly active users globally, nearly doubling from about six months ago as customers seek more affordable options. Priced at $6.99 per month in the U.S., this plan now accounts for over half of all new Netflix sign-ups in regions where it is available. The ad-supported tier had reached 40 million global monthly active users by May.
Netflix’s cheapest plan without commercials costs $15.49 a month. Some analysts have previously suggested that Netflix should increase the prices of its ad-free options to encourage customers to switch to the commercial plan, as it typically generates more revenue per user.
The company has not provided details on the financial performance of the ad-supported plan and does not expect it to become a primary growth driver until 2026. This tier has maintained the same pricing since its launch in late 2022.
Additionally, Netflix announced on Tuesday that it has signed FanDuel as an exclusive pre-game sports betting partner for its Christmas Day National Football League (NFL) games. “This custom segment will feature Netflix Christmas Gameday talent, offering analysis and predictions aligned with FanDuel’s wagering odds for the games,” the company stated. All available in-game ad inventory for the two live NFL games has already sold out, and Netflix has partnered with advertisers, including Verizon Communications.
The company also indicated that Canada has become the first country to operate solely on Netflix’s ad technology. Netflix aims to roll out this technology globally throughout 2025. As a result, shares of Netflix rose by 1.1% in early trading.