Binging on a Budget- The Explosive Growth of Netflix’s Ad Tier (NFLX)
- In November 2022, Netflix introduced its ad-supported subscription tier and a crackdown on password sharing as a strategic response to decelerating subscriber growth. At the time, the platform reported approximately 220 million paying subscribers globally. Today, that figure exceeds 300 million, with a substantial portion of new growth attributed to the ad-supported “Standard with Ads” plan.
- As streaming platforms expand and competition intensifies, cost-conscious consumers have increasingly embraced the value offered by lower-priced, ad-supported options. Occam’s analysis shows that the ad-supported tier now represents over 35% of Netflix’s total U.S. subscriber base—a significant increase from just single digit percentages in 2023, when Occam first observed early signs of adoption.
- Netflix has been phasing out its Basic plan in the United States with subscribers given the option to transition to “Standard with Ads” or one of the more expensive plans. Occam continues to track how existing subscribers shift among the company’s remaining three subscription tiers. Subscribe today for the most recent data to stay ahead of the curve.
