Netflix said Tuesday that it had reached 70 million monthly active users on its ad-supported plan, two years after launching its cheaper subscription tier that includes commercials.
That’s up from May, when the company reported having 40 million monthly users on the ad version.
The Los Gatos, Calif., streamer has also been diversifying its content, including increasing its streams of live events, in order to boost its nascent advertising business.
Netflix said it had sold out of the in-game inventory for its live NFL Christmas Day games this year, with sponsors that include sports betting company FanDuel and Verizon. The company also said it had sold ads across its scripted programs, including the anticipated second season of the Korean drama “Squid Game.”
The company said that more than half of new sign-ups in countries where Netflix offers ads are for the cheaper ad-subscription tier.
“There has been continuous momentum over the last two years, but we’re just getting started and can’t wait to see what’s to come,” Amy Reinhard, president of advertising, said in a blog post.
Netflix began offering a cheaper ad subscription plan in November 2022 after the streamer saw its subscriber growth in decline earlier that year. In the U.S., Netflix with ads cost $6.99 a month, compared to ad-free options that start at $15.49 a month.
At first, Netflix’s ad-supported tier was powered by Microsoft’s technology through a partnership, but the streamer is transitioning to using its own in-house ad technology which will make it function independently from third parties.
The ad-supported tier was part of a broader push to diversify Netflix’s offerings and boost revenue. In addition to commercials, Netflix has started streaming live events, cracking down on password-sharing and promoting games on its platform.
This week, Netflix will up its live sports ambitions with a boxing match between former heavyweight champion Mike Tyson and influencer-turned-fighter Jake Paul.
Netflix in the third quarter added 5 million subscribers, bringing its total to about 283 million globally.