Netflix ad tier reaches 190 million monthly viewers

Netflix announced on November 5 that its ad-supported streaming plan has reached more than 190 million monthly active viewers worldwide, adopting a new measurement system that counts individuals who watch at least one minute of ads per month multiplied by average household size.reuters

The streaming giant shifted from its previous monthly active users metric, which tracked account profiles, to the new Monthly Active Viewers (MAV) metric to better capture co-viewing experiences and provide a more complete count of people watching content together.latimes

Co-CEO Greg Peters revealed that Netflix achieved its highest ad sales quarter in the third quarter and is on track to more than double its ad revenue in 2025, though advertising income remains modest compared to subscription revenue.reuters

The company is expanding advertising capabilities with dynamic ad insertion technology for live events including WWE Raw and NFL Christmas Day games, with plans to roll out the feature across additional countries by 2026.reuters

Netflix is introducing enhanced targeting options for advertisers based on demographics like education and household income, while testing interactive video ad formats in the U.S. and Canada for a planned global launch in the second quarter of 2026.latimes

Netflix Announces 190 Million Monthly Active Viewers on Ad Tier

Netflix revealed Wednesday that its ad-supported streaming plan now reaches more than 190 million monthly active viewers globally, introducing a new measurement system designed to better capture the true reach of its advertising platform. The streaming giant’s announcement marks a significant shift from its previous monthly active users metric, reflecting the company’s growing confidence in its advertising business as it seeks to diversify revenue streams beyond subscriptions.reuters

The new metric, called Monthly Active Viewers (MAV), counts subscribers who watch at least one minute of ads per month, then multiplies that figure by the estimated average household size based on Netflix’s internal research. According to Amy Reinhard, Netflix’s president of advertising, the change provides “a more comprehensive count of how many people are actually on the couch, enjoying our must-see series, films, games and live events with friends and family”. The previous measurement system tracked individual account profiles, which Netflix said undercounted co-viewing experiences.latimes

Advertising Revenue Surge Drives Growth Strategy

Netflix reported its “best ad sales quarter ever” in the third quarter of 2025, with the company on track to more than double its advertising revenue this year. JPMorgan analyst Doug Anmuth projects Netflix’s ad revenue will climb from $1.4 billion in 2024 to $2.9 billion in 2025, with further growth to $4.2 billion expected by 2026. The ad-supported tier, priced at $7.99 per month compared to $17.99 for the lowest ad-free plan, now accounts for 45% of Netflix’s total U.S. household viewing hours.yahoo

Co-CEO Greg Peters emphasized that while advertising revenue remains modest compared to subscription income, Netflix has established “the fundamentals” for this business and sees substantial growth opportunities ahead. The company has launched dynamic ad insertion technology for live events including WWE Raw and SmackDown, with plans to expand this feature to NFL Christmas Day games across six countries.yahoo

Enhanced Targeting and Interactive Formats on Horizon

Netflix is preparing to launch interactive video ads in the U.S. and Canada, with a global rollout planned for the second quarter of 2026. The company will also introduce advanced demographic targeting options including education level, marital status, and household income, alongside in-market targeting for consumers interested in luxury vehicles, travel, and dining. These initiatives represent Netflix’s evolution from an ad-averse platform to what analysts describe as a “formidable competitor in connected TV”, with the company now capturing approximately 8% of forecast connected TV spending worldwide.deadline