Netflix has gained over 8 million global paid subscribers since April, according to the company’s second-quarter earnings report. With this increase, Netflix now boasts a total of 277.65 million paid subscribers worldwide. This reflects a 16.5 percent growth compared to last year.
Rise in Ad-Supported Memberships
Netflix’s ad-supported tier has seen substantial growth. Memberships increased by 34 percent from the first to the second quarter of 2024. The streaming giant had eliminated its cheapest ad-free “Basic” subscription tier last year.
This change pushed customers towards its ad-supported plans. In the United States, the Basic plan was previously priced at $9.99 per month. Now, the lowest ad-free option costs $15.49 per month. This shift has significantly contributed to the rise in ad-supported memberships.
Global Subscriber Growth
The company’s aggressive move to promote its ad-supported tier has paid off. This is especially true in markets like the UK and Canada, where customers were warned to switch to new plans. The ad-supported plan, priced at $6.99 per month, includes between four and five minutes of ads per hour. Ads vary in length from 15 to 30 seconds.
Revenue Growth and Future Projections
Netflix reported a 17 percent increase in revenue year-over-year. The company expects overall growth for 2024 to be between 14 to 15 percent. Netflix anticipates that ad memberships will continue to grow in 2025 and beyond. Ad revenue is expected to become a more significant part of its business model. Netflix is also planning to test an in-house ad tech platform in Canada, with broader implementation expected in 2025.
Netflix’s strategic adjustments, including the focus on ad-supported streaming, are driving subscriber growth and financial success. The company’s ability to adapt to market changes and consumer preferences will likely continue to shape its trajectory in the competitive streaming industry.
