TL;DR
Netflix announced that its ad-supported tier now has over 250 million monthly active users, a substantial increase from previous years. This growth reflects the tier’s rising popularity amid rising subscription costs and global expansion plans.
Netflix’s ad-supported tier now has more than 250 million monthly active users, according to the company’s recent Upfront presentation. This marks a significant growth milestone for the subscription option, which has seen rapid expansion over the past two years and is now a major component of Netflix’s global strategy.
Since its launch in 2022, Netflix’s Basic with Ads tier has steadily gained users, reaching 70 million in 2024 and 94 million in 2025. The latest figure of over 250 million monthly active users indicates a substantial increase, driven by global expansion and growing consumer demand for more affordable streaming options. Netflix plans to introduce the ad-supported plan in 15 additional countries next year, including Austria, Belgium, Colombia, and others, further extending its reach. The company has also integrated AI technology to personalize ad experiences, aiming to improve user engagement and ad effectiveness. Despite this growth, Netflix faces ongoing legal scrutiny, including a lawsuit from Texas alleging illegal data sales to ad tech firms, which the company denies.
Why It Matters
This development is significant because it demonstrates the rapid adoption of Netflix’s ad-supported tier, which now accounts for a large portion of its user base. The growth underscores consumer willingness to accept ads in exchange for lower subscription costs and highlights the importance of ad revenue for Netflix’s financial strategy. The expansion into new markets and the integration of AI for personalized advertising suggest that streaming services are increasingly relying on ad models to sustain growth amid rising content costs and subscriber saturation.
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Background
Netflix introduced its Basic with Ads tier in 2022 as a response to rising subscription costs and increased competition in the streaming industry. The ad-supported plan grew from 70 million users in 2024 to 94 million in 2025, and now exceeds 250 million in 2026, reflecting strong consumer demand. The company has announced plans to expand to 15 more countries next year, part of its broader global growth strategy. Meanwhile, Netflix is investing in AI technology to enhance ad personalization, aligning with industry trends toward data-driven advertising. The company is also facing legal challenges, including a lawsuit from Texas over alleged data sales, which it denies.
“The growth of our ad-supported tier to over 250 million monthly active users underscores the demand for affordable, ad-supported entertainment options worldwide.”
— Netflix spokesperson
“Netflix’s rapid expansion of its ad tier suggests a shift in consumer preferences and a significant revenue opportunity for the company.”
— Industry analyst
ad-supported streaming device
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What Remains Unclear
It remains unclear how much of this growth is driven by new international markets versus existing users switching from ad-free plans. Details on user engagement levels and ad revenue impact are still emerging. Additionally, the effect of ongoing legal challenges on future growth remains uncertain.
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What’s Next
Next steps include Netflix’s planned expansion into 15 additional countries in 2027, further AI integration to optimize ad delivery, and ongoing monitoring of legal and regulatory developments. The company may also report updated user and revenue figures in its upcoming quarterly earnings.
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Key Questions
How does the growth of the ad-supported tier impact Netflix’s revenue?
While exact figures are not disclosed, the increase in active users suggests a potential boost in ad revenue, which is becoming an increasingly important part of Netflix’s income stream.
Will the ad-supported tier replace the ad-free plans?
No, Netflix continues to offer ad-free plans; the ad-supported tier is an additional option aimed at expanding its user base and revenue streams.
What countries will Netflix expand to next year?
Netflix plans to launch its ad-supported plan in 15 more countries, including Austria, Belgium, Colombia, Denmark, Indonesia, Ireland, the Netherlands, New Zealand, Norway, Peru, Philippines, Poland, Sweden, Switzerland, and Thailand.
