NETFLIX said monthly active users of its advertising-supported subscription plan reached 40 million, and that it will launch an in-house ad technology platform to support this growing part of its business.
The number of users rose from five million a year ago, Amy Reinhard, the company’s president of advertising, said on Wednesday (May 15) in New York where Netflix was presenting its future programming lineup to potential sponsors. Ad-plan subscribers amount to over 40 per cent of the sign-ups in the countries that offer the plan. The company has 270 million subscribers overall.
Netflix is working to make ad sales a major new revenue component – and bringing the technology in-house to increase its ability to manage the business. Having its own platform will let the company offer sponsors new ways to buy ads as well as measure their effectiveness.
In the coming months, Netflix will expand its buying capabilities to additional online advertising companies. The Trade Desk, Google Display & Video 360 and Magnite will join Microsoft in facilitating automated ad purchases.
For measurement and verification the company is working with Affinity Solutions, DoubleVerify, iSpotTV, Kantar, Nielsen and others.
The ad technology developments follow the company’s announcement earlier Wednesday that it will air two National Football League games on Christmas Day as part of a three-season deal.
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The streaming industry leader has been experimenting with live programming for the past year as a way to broaden the entertainment options for its customers and create appealing properties for advertisers. Sports is the most valuable live programming in the world.
Netflix launched its ad-supported plan in 12 markets in November 2022. It’s a big part of the company’s plans to generate new revenue sources as the streaming business has matured. Netflix’s ad-supported tier costs US$7 a month in the US, less than half the price of its standard plan.
As part of the presentation to advertisers, the company announced several sports-related programmes, including shows about gymnast Simone Biles, Olympics basketball and a Dallas Cowboys docuseries. BLOOMBERG
