Netflix Inc (NASDAQ:NFLX) is gaining traction with its advertising-based plan, attracting more than 23 million global monthly active users, Variety reported, citing Amy Reinhard, president of advertising at the streaming giant.
Netflix reported 15 million active users worldwide on the ad-supported membership tier in its last update in November. Viewers are switching to the cheaper plan due to higher prices for its traditional offering and a crackdown on password sharing.
Speaking at the Variety Entertainment Summit at the CES 2024 tech show in Las Vegas, Reinhard said 85% of customers on ad-supported plans are streaming on the platform for more than two hours a day, according to Variety.
“We’re very fortunate to be able to take a long-term perspective on this,” Reinhard told the summit.
“Scaling our business is absolutely our biggest priority right now, but we want to make sure we’re doing that in a meaningful way for the members.”
In December, Netflix co-CEO Ted Sarandos told a UBS conference the company plans to offer multiple ad-supported tiers in the future. It currently offers multiple tiers, ranging in price from $6.99 to $19.99, but there will likely be a wider variety of ad-supported tiers going forward, according to Sarandos.
Also in December, a report from Insider Intelligence projected that Netflix will rake in more dollars from US advertisers than Disney+ in 2024 due to the move to the ad-supported tier.