Netflix introduced an ad-supported plan in the United States on November 3, 2022, reversing its long-standing ad-free model for viewers who wanted a lower monthly price. Two years later, the company marked the anniversary by touting the plan’s audience growth: Netflix said it had reached 70 million monthly active users worldwide. That was a 2024 milestone—not a current audience count, and not 70 million paid subscribers.
Why does Netflix have ads now?
The company framed the change as a way to offer a less expensive option. In its third-quarter 2022 shareholder letter, Netflix said it was responding to demand for a lower-priced plan. It announced its US “Basic with Ads” plan at $6.99 per month, describing it as a complement to its existing plans—not a replacement for ad-free viewing.
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The rollout began in Canada and Mexico on November 1, 2022; the US and eight other markets followed on November 3, with Spain scheduled for November 10. Netflix estimated that the new plan would carry about five minutes of ads per hour and said it would use frequency caps and privacy protections. Those were launch-era details and should not be read as a description of every market or the plan today.
What did Netflix mean by celebrating two years?
In its November 12, 2024 announcement, Netflix said the advertising business had reached 70 million monthly active users globally. It also said that more than half of new Netflix sign-ups in countries where the ads plan was available were for that plan. The second figure describes sign-ups in those markets—not the share of all Netflix members, or the share of sign-ups worldwide.
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Netflix called the milestone evidence of “positive momentum and growth across all areas of the business.” The celebration was about the expanding audience and the company’s advertising operation. The announcement did not disclose ad revenue, and monthly active users are not the same as paid subscribers.
How the ads plan changed after launch
The features Netflix highlighted at launch were not the plan’s final form. In a November 2023 update, the company said the ads plan had been upgraded to 1080p resolution and two simultaneous streams, with downloads becoming available that week. Netflix also discussed new ad formats and sponsorship opportunities, reflecting an effort to build an advertising product as well as a cheaper viewing tier.
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- No credit card is required to redeem a gift code.
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Audience figures rose during that period: Netflix told advertisers in May 2024 that it had 40 million global monthly active users, compared with 5 million a year earlier. Those were company figures presented at an advertiser event. They are useful historical context, but neither that count nor the 70 million figure from November 2024 should be treated as current in 2026.
What viewers trade for the lower-priced option
Netflix’s current ads-plan page says ads can appear before and during selected shows and movies; some newly released films may have only pre-roll ads. Some titles are unavailable on the plan because of licensing restrictions. The page also warns that some older devices may not be compatible. Plan availability and billing options vary by country and billing partner, so check Netflix’s current ads-plan details for your location before choosing.
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- Unlimited movies, TV shows, and more. Watch anywhere. Cancel anytime.
- Give the gift of entertainment so your friends and family can stream unlimited films and Netflix original series. Whether your loved one already has a Netflix account or they will be creating a new account, they can use a Netflix gift card toward their membership.
- No credit card is required to redeem a gift code.
- Codes are applied to your account as a gift balance. Gift codes can be added to any plan, regardless of the amount.
- Redemption: Online
These limitations are distinct from the plan’s launch-era estimate of about five minutes of advertising per hour. That estimate came from Netflix in 2022; current ad placement and availability should be checked against the live plan information rather than assumed from the original announcement.
Why audience growth did not equal a major ad business
A large audience can make a service more attractive to advertisers, but it does not by itself show how much money the ads generate. In October 2024, the Associated Press described advertising as a small fraction of Netflix’s revenue. Reporting on the company’s results, AP quoted co-CEO Greg Peters saying, “We’ve got a lot of work ahead of us.” Netflix’s November anniversary announcement focused on users and sign-up share, not revenue, so its headline audience milestone was not evidence that advertising had become a major revenue stream.
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- Unlimited movies, TV shows, and more. Watch anywhere. Cancel anytime.
- Give the gift of entertainment so your friends and family can stream unlimited films and Netflix original series. Whether your loved one already has a Netflix account or they will be creating a new account, they can use a Netflix gift card toward their membership.
- No credit card is required to redeem a gift code.
- Codes are applied to your account as a gift balance. Gift codes can be added to any plan, regardless of the amount.
- Redemption: Online
The reversal, in context
Netflix’s change was a strategic trade-off: introduce advertising to support a lower-priced option, then grow both the audience for that option and the products sold to advertisers. The company’s 2024 “celebration” marked meaningful scale for a business launched in 2022, but the user count and sign-up share answer a different question from how much advertising contributes financially. For viewers, the practical decision remains whether the lower local price is worth ads, possible title restrictions, and the plan’s device and feature conditions.
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- Give the gift of entertainment so your friends and family can stream unlimited films and Netflix original series. Whether your loved one already has a Netflix account or they will be creating a new account, they can use a Netflix gift card toward their membership.
- No credit card is required to redeem a gift code.
- Codes are applied to your account as a gift balance. Gift codes can be added to any plan, regardless of the amount.
- Redemption: Online
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