During a presentation in New York, Amy Reinhard, Netflix’s President of Advertising, revealed that Netflix has reached a significant milestone in its subscription offerings, with the number of monthly active users on its advertising-supported plan skyrocketing to 40 million, a substantial increase from the 5 million reported a year ago.
Netflix is focusing on advertising to boost revenue, planning to launch an in-house ad technology platform for better ad management and optimization. The company aims to offer new ad placement opportunities and improved ad effectiveness measurement to advertisers.
Netflix also plans to expand its buying capabilities to other online advertising platforms and is partnering with industry leaders like The Trade Desk Inc., Google Display & Video 360, Magnite Inc., and Microsoft Corp. to automate ad purchases and simplify the advertising process.
To ensure accurate measurement and verification of advertising metrics, Netflix is collaborating with trusted analytics providers including Affinity Solutions, DoubleVerify, iSpotTV, Kantar, Nielsen, and others.
The expansion of Netflix’s ad-supported plan, introduced in 12 markets in November 2022, reflects the company’s overarching goal to explore new revenue streams as the streaming industry evolves. Priced at $7 a month in the US, this ad-supported tier provides subscribers with a more economical option compared to the standard plan, highlighting Netflix’s dedication to offering diverse subscription choices to its growing user base.
These developments underscore Netflix’s commitment to adapting to changing market dynamics and consumer preferences. By venturing into live sports programming and expanding its ad-supported offerings, Netflix seeks to bolster its position in the highly competitive streaming landscape and capitalize on emerging opportunities in the digital entertainment market.
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