TL;DR
Netflix’s ad-supported subscription now has over 250 million monthly users, a major increase from previous years. This growth underscores the platform’s shift towards advertising revenue amid rising subscription costs.
Netflix’s ad-supported tier now has more than 250 million monthly active users, according to the company, marking a substantial growth milestone that highlights the platform’s increasing reliance on advertising revenue.
The figure was disclosed during Netflix’s recent Upfront presentation. The ad-supported plan, launched in 2022, had 70 million users in 2024 and grew to 94 million in 2025. As of the latest report, the tier has expanded to over 250 million monthly users. Netflix plans to extend this offering to 15 additional countries starting next year, including Austria, Belgium, Colombia, Denmark, Indonesia, Ireland, the Netherlands, New Zealand, Norway, Peru, Philippines, Poland, Sweden, Switzerland, and Thailand. The company has emphasized that the ad tier is becoming increasingly popular, especially as overall subscription costs have risen—Netflix increased all monthly subscription prices by one dollar earlier this year. The company is also integrating AI technology to personalize ad loads and optimize ad frequency based on viewing behavior. Despite this growth, Netflix is facing a lawsuit from Texas alleging illegal data sales, which the company denies, stating the suit is based on inaccurate information.
Why It Matters
This milestone signifies Netflix’s successful pivot to an ad-supported model, which is critical for its revenue diversification amid rising subscription prices and increased competition in streaming. The rapid growth of the ad tier indicates strong consumer acceptance and could influence industry standards for ad-based streaming services, affecting advertisers and competitors alike.
Roku Smart TV 2026 – 40-Inch Select Series, 1080p Full HD TV – Roku TV with Voice Remote – Flat Screen LED Television with Wi-Fi for Streaming Live Local News Sports & Movies, Bluetooth Headphone Mode
- Fast Wi-Fi for Seamless Streaming: Quick app launches and smooth playback
- Vast Content Library: Access to all kinds of entertainment
- Free Streaming Channels: Over 500 channels including news and movies
As an affiliate, we earn on qualifying purchases.
As an affiliate, we earn on qualifying purchases.
Background
Netflix introduced its Basic with Ads plan in 2022 as a lower-cost alternative to its standard subscriptions. The move was part of a broader industry trend towards ad-supported streaming, driven by consumer demand for cheaper options and the need for new revenue streams. The platform’s user base for the ad tier has grown significantly, from 70 million in 2024 to over 250 million now, reflecting the plan’s increasing popularity. The expansion to additional countries next year is part of Netflix’s global strategy to capitalize on this growth. Meanwhile, Netflix is investing in AI to enhance ad targeting, aiming to improve ad relevance and user experience. The company’s ongoing legal issues over data privacy remain a point of concern, though it denies any wrongdoing.
“The growth of our ad-supported tier to over 250 million monthly active users demonstrates the strength of this model and its importance to our overall strategy.”
— Netflix spokesperson
“Netflix’s rapid expansion in the ad-supported segment indicates a significant shift in consumer preferences and the company’s successful adaptation to market demands.”
— Industry analyst
Amazon Fire TV Stick HD, free and live TV, Alexa Voice Remote, smart home controls, HD streaming
- Full HD Streaming: Enjoy fast HD streaming for your TV
- Ideal for Beginners: Access hundreds of free movies and TV shows
- Voice Control with Alexa: Search and launch content using voice commands
As an affiliate, we earn on qualifying purchases.
As an affiliate, we earn on qualifying purchases.
What Remains Unclear
Details about the exact timing of the milestone and the precise number of users in each country are not yet confirmed. The impact of ongoing legal issues on user growth and revenue remains unclear, and Netflix has not disclosed detailed ad revenue figures linked directly to this user base.
Replacement Voice Remote for Samsung-TV-Remote Control Compatible for All Samsung with Voice Function Smart Curved Frame QLED LED LCD 8K 4K TVs
- Easy pairing process: Hold buttons for 5-8 seconds to pair
- Wide remote compatibility: Compatible with various Samsung remote models
- Supports multiple Samsung TV models: Compatible with QLED, LED, LCD, 8K, 4K TVs
As an affiliate, we earn on qualifying purchases.
As an affiliate, we earn on qualifying purchases.
What’s Next
Netflix plans to expand its ad-supported tier to 15 more countries next year, aiming to sustain user growth. The company will likely continue refining its AI ad targeting and may reveal more detailed financial impacts of this segment in upcoming earnings reports. Monitoring legal developments related to data privacy will also be important.
Micca 4K Ultra-HD Digital Media Player for USB Drives and MicroSD Cards, Digital Signage, H.265/HEVC H.264/AVC MP4 MKV Videos MP3 Music JPG Photos, 4K HDMI, Analog AV, Auto Play and Resume
- Enhances TV with media playback: Plays videos, music, and slideshows from USB or MicroSD
- Supports 4K Ultra-HD videos: Plays 4096×2304@30fps videos over HDMI
- Compatible with various displays: Works with 4K and 1080p TVs, projectors, monitors
As an affiliate, we earn on qualifying purchases.
As an affiliate, we earn on qualifying purchases.
Key Questions
How has Netflix achieved such rapid growth in its ad-supported tier?
Netflix’s growth is driven by increasing consumer demand for more affordable subscription options, as well as the company’s strategic expansion into new markets and technological improvements like AI-based ad targeting.
Will the growth in the ad tier affect Netflix’s subscription prices?
While Netflix has increased prices for its standard plans, it has not announced plans to raise prices specifically for the ad-supported tier. The growth in ad revenue may help offset some costs, but the impact on pricing remains unclear.
What is the significance of Netflix expanding to more countries?
This expansion aims to capitalize on the popularity of the ad-supported model globally, increasing the user base and advertising revenue opportunities across diverse markets.
How does the lawsuit from Texas impact Netflix’s ad operations?
The lawsuit alleges illegal data sales, but Netflix denies these claims, stating the lawsuit is based on inaccurate information. The legal proceedings are ongoing and could influence data privacy policies.
