Netflix’s ad tier has reached 40 million users

Netflix says 40 million people are now subscribed to its lower-cost, ad-supported membership tier.

The company revealed the data at its recent upfront presentation alongside other announcements. The 40-million figure marks a rapid period of growth for the ad tier, which costs $5.99/month in Canada. In January, Netflix said the ad tier reached 23 million, which was itself a marked increase from the five million milestone it reached last May.

What’s more, Netflix says over 40 percent of all signups now come from the ad tier in the markets in which it’s available. For context, Netflix confirmed last month that it has 270 million subscribers worldwide, meaning that the ad tier already accounts for nearly 15 percent of all subscribers. Given how everything is going up in price nowadays, it’s easy to see why the ad tier is more appealing to some users.

In terms of value, Netflix’s ad tier includes almost all of the same content as the more premium memberships, which are $16.49 and $20.99. Depending on the country, Netflix estimates there will be about five to ten percent fewer movies and TV shows due to “licensing restrictions.” Otherwise, the catalogues are nearly the same between membership options, just with better resolution and more simultaneous streams supported on the higher tiers. Netflix Games are also included at no additional cost in the ad tier.

Outside of the membership data, Netflix says Google, The Trade Desk and Magnite will join Microsoft as the main programmatic partners for advertisers this summer. Microsoft has been the exclusive partner since the ad-enabled membership launched two years ago.

Elsewhere during the upfront, Netflix teased several upcoming titles, including a sequel to Adam Sandler’s Happy Gilmore, Mindy Kaling’s Running Point (starring Kate Hudson) and Back in Action starring Jamie Foxx and Cameron Diaz (in her first acting role since 2014’s Annie).

Source: Netflix