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Netflix introduced ads because it wanted a lower-priced subscription option; two years later, the company was celebrating the scale of the audience that option had attracted. On November 12, 2024, Netflix said its ads business had reached 70 million monthly active users worldwide. That was a milestone for reach—not 70 million paid subscribers, and not evidence that advertising had become a major source of Netflix revenue.
Why does Netflix have ads now?
Netflix added an ad-supported plan to give price-conscious viewers a less expensive way to subscribe. In its October 2022 shareholder letter, the company framed the forthcoming tier as a lower-priced choice alongside its existing plans. The US plan launched on November 3, 2022, as Basic with Ads, at $6.99 per month. That was its US launch price, not a statement of what the plan costs today. Netflix’s launch announcement
The change was a business trade-off: Netflix could offer a cheaper entry point while selling advertising against viewing on that tier. The initial plan was not simply an ad-free subscription at a lower price. Netflix’s October 2022 letter estimated about five minutes of advertising per hour and said it would use frequency caps and privacy protections. Those were launch-era descriptions, not a guarantee of the ad load or policies on every current title and market. Netflix Q3 2022 shareholder letter
When did Netflix roll out the ad plan?
Netflix announced a phased launch in 12 initial markets in October 2022. Its shareholder letter set November 1 for Canada and Mexico, November 3 for the United States and eight other markets, and November 10 for Spain. The US launch announcement followed on November 3 under the Basic with Ads name. The timeline shows that Netflix introduced the plan as a deliberate expansion of its subscription choices, not as a feature added to every account.
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What did Netflix mean by celebrating two years?
In its November 12, 2024 announcement, Netflix said the ads business had reached 70 million monthly active users globally. It also said that, in countries where the ads plan was available, more than half of new Netflix sign-ups were choosing it. Netflix described this as “positive momentum and growth across all areas of the business.” Netflix’s November 2024 announcement
Those figures need careful reading. The 70 million figure was monthly active users, not a count of paid subscribers. The “over 50%” figure referred to new sign-ups in ad-supported countries—not all Netflix members or all sign-ups worldwide. Both numbers describe Netflix’s business as of November 2024; they are not current audience figures for 2026.
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The milestone was also about growth over time. At its May 15, 2024 advertiser presentation, Netflix said the ads plan had 40 million global monthly active users, up from 5 million a year earlier, and that it represented over 40% of sign-ups in countries where the plan was available. Those were company figures presented to advertisers; they are useful context for the later 70 million announcement, not independent measurements. Netflix’s May 2024 Upfront announcement
What does the ads plan mean for viewers?
The lower-priced option comes with restrictions and details that can vary by country, device, title and billing partner. Netflix’s current plan page says ads may appear before and during select shows and movies; some newly released films may have only pre-roll ads. It also says that licensing restrictions make some titles unavailable on the ads plan, and that some older devices may not be compatible. Netflix lists availability in 12 countries, while noting that billing-partner availability can differ. Netflix ads plan details
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Netflix has also changed the product since launch. In a November 2023 update, the company said the plan had been upgraded to 1080p resolution and two concurrent streams, and that downloads were becoming available that week. These were first-year improvements; they should not be mistaken for features present at the November 2022 launch. Netflix’s one-year update
For a household weighing the ads tier against an ad-free option, the practical comparison is not just the monthly price. Check the current price in your country, how many people can stream at once, resolution and download support, whether the titles you watch are included, and whether your devices work with the plan. Netflix’s plan page and local checkout are the relevant places to verify current availability and terms.
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Why didn’t 70 million users mean ads were a major revenue stream?
A large audience can make an advertising business strategically important without making it a large share of total company revenue straight away. Netflix’s November 2024 celebration highlighted users and the proportion of new sign-ups choosing the tier; it did not disclose advertising revenue in that announcement.
In October 2024, the Associated Press characterized advertising as a small fraction of Netflix revenue at the time. AP also quoted co-CEO Greg Peters, speaking about the business’s development: “We’ve got a lot of work ahead of us.” Associated Press, October 17, 2024 The distinction matters: user growth can show that viewers will take a lower-priced, ad-supported option, but it does not by itself establish how much revenue ads generate or how profitable the business is.
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