Netflix records approximately 5 million monthly active users for its ad tier

Netflix has said that its recently introduced ad-supported tier has gained nearly 5 million monthly active users globally.

A company executive made the announcement on Wednesday at a presentation to advertisers.

However, this figure may only partially be accurate due to the possibility of multiple users sharing an account.

Greg Peters, Netflix's Co-Chief Executive, stated that the member base of the ad tier has "more than doubled" since earlier this year. 

The video streaming platform has minted a total of 232.5 million global subscribers, according to reports. 

Last November, the platform introduced a $7-per-month option with commercials, available in 12 markets, including the US, as an alternative to ad-free plans that start at $10 per month. This was aimed at attracting additional customers and creating a new source of revenue, amidst growing competition for online viewers.

Netflix on Wednesday made its inaugural presentation to advertisers at upfronts, an annual event, where networks strive to secure advertising commitments for their upcoming shows. 

Netflix executives emphasised the variety of content offered by the company, ranging from the science fiction series "Stranger Things" to the Korean drama sensation "Squid Game" and the movie sequel "Extraction 2."

"No other entertainment company aspires to create great movies and shows across so many genres in so many countries, and for such a broad, diverse audience," Bela Bajaria, Chief Content Officer for Netflix, said. 

Co-Chief Executive Ted Sarandos said that executives had expressed their interest to work with advertisers to create new types of advertising that could only be done on a digital service. For instance, a 30-minute commercial could play out over several days, with a story unfolding each time a viewer watches a show on Netflix. 

"You can't do that in linear TV because people don't live on one channel," Sarandos stated.

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