Netflix’s Ad-Enabled Strategy Has Drawn Quite A Crowd
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Summary
- Netflix’s ad-supported subscription tier has more than doubled to 94 million subscribers in a year.
- Netflix is expanding its ad platform, Netflix Ad Suite, which offers a low ad load and high engagement.
- Netflix appears to be all-in on ads, but the fear of a slippery slope is becoming increasingly warranted.
Netflix first introduced its ad-supported subscription tier back in 2022, and it has been growing steadily since, with a big spike over the last year that more than doubled its numbers (via The Verge), going from 40 million in May 2024 to 94 million in May 2025. That’s a big jump, which clearly shows many streaming customers are willing to deal with ads in their content if it means they can save some money on a cheaper plan subsidized by advertisements.
So, if you were hoping Netflix’s ad tier would be a flash in the pan, forget it; Netflix is already dreaming up new ways to inject ads, like ads on the screen when you pause your content.
Related
Netflix didn’t build its own advertising platform for nothing
The Netflix Ad Suite is currently available in the US and Canada, with plans to roll the platform out to the 12 countries that presently support Netflix’s ad-tier subscription by June of this year. The suite certainly has a draw, since it offers a low ad load while promising high engagement, with the ability to tie well into Netflix content since it is Netflix’s ad platform. Clearly, customers are happy with the results, seeing that the ad-tier subscriber count has more than doubled in the last year.
More or less, Netflix looks to be all-in on ads and is laying the groundwork with its Netflix Ad Suite to reap the benefits of owning its own advertising platform. This would explain why Netflix is already testing new ways to inject ads into its content, with new formats expected next year, like ads that show up when you pause a show or movie, which the company has already been spotted testing.
Whether it’s because of the economy and people buckling down on what they spend, or a growing acceptance of ads in streaming content, Netflix’s ad-tier is growing by leaps and bounds, and with more and more attention put into its own ad network, it looks like Netflix is planning on seeing continued growth in the area, confirmed by Netflix’s president of advertising Amy Reinhard who has been quoted saying “the foundations of our ads business are in place,” which sure sounds like advertisements are shaping up to be big business for Netflix.
Some slopes are more slippery than others
Of course, many subscribers of Netflix’s premium ad-free tiers are worried advertisements will prove to be such a hit they’ll eventually find their way to every subscription tier. It’s not like this is an unfounded idea. Cable TV started without ads, and ended up so filled with them that people cut the cord to move to streaming, and here we are, streaming is playing more and more with ad tiers, and with Netflix’s latest success growing its ad-tier subscribers, some of us are starting to get worried streaming is turning into the new Cable TV.
