Netflix's advertising-supported subscription tier has reached 40 million global monthly active users, the company announced. This represents significant growth for the service launched in late 2022.
The company reported that its ads plan now accounts for over 40% of all new sign-ups in the countries where it is available. This growth is a key part of Netflix's strategy to diversify revenue beyond traditional subscriptions.
While Netflix does not break out exact advertising revenue figures, company executives have stated that the ad tier is already a multi-billion dollar revenue stream. They project it will become an even larger contributor in the future.
The expansion of this business segment comes as Netflix continues to crack down on password sharing and focus on profitability. The company's overall revenue and subscriber base have continued to grow in recent quarters.
