Netflix advertising level has 40 million users

Separately, Netflix announced that it would launch its own advertising platform and would no longer partner with Microsoft for this technology. The tech giant will remain a programmatic advertising partner.

Netflix introduced the ad-supported plan in November 2022 as part of a broader effort to generate revenue amid slowing subscriber growth. This strategy included cracking down on password sharing last year.

The company said Wednesday that 40% of all signups in countries where the ad tier is available are for this cheaper plan. Netflix now has 270 million total subscribers.

The monthly ad active user figures come just a month after Netflix told investors it would no longer provide quarterly subscriber number updates. The company said at the time that it was generating substantial profits and free cash flow and that its membership was not the only factor driving the company’s growth. He said the measure lost importance after he began offering multiple pricing tiers for memberships.

The increase in ad users comes as linear TV audiences decline and traditional media companies seek to gain a foothold in the streaming space. Netflix has established itself as the leader in the segment while many other companies are struggling to make their streaming platforms profitable.

The main competitors have far fewer subscribers than Netflix. In its first-quarter earnings report, Comcast said its Peacock streaming platform had 34 million subscribers.

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Disclosure: Comcast is the parent company of NBCUniversal and CNBC.