• Netflix's Ad Testing: Joining streaming rivals, Netflix is testing the amount and types of ads subscribers are willing to endure for lower prices. It announced interactive mid-roll ads and pause ads with generative AI, with subscribers expected to see them in 2026.
• Pause Ads Start: Started testing pause ads in July 2024.
• Ad Subscription Launch: Launched its ad subscription tier in November 2022. It now has 94 million subscribers for this tier, a 34% increase from November. Half of new subscribers choose the $8 per month ad-supported option instead of the $18 per month ad-free one.
• Ad Subscriber Behavior: Ad subscribers spend 41 hours per month on Netflix on average.
• Ad Platform Expansion: Launched its in-house advertising platform in the US in April and debuted it in Canada. Plans to expand globally by June.
• Ad Business Outlook: Regards the advertising business as in its early stages and plans to double advertising revenue in 2025. Says the pace of progress will be faster going forward.
• Comparison with Others: Netflix subscribers join mainstream streaming customers in growing ad efforts. Amazon announced contextual pause and shoppable ads for Prime Video. Web-based TV viewers also see new advertising efforts like LG TVs' webOS software integrating ads that analyze viewer emotions.