Netflix reported that its ad-supported plan more than doubled the number of monthly viewers for the second consecutive year. During its 2026 upfront presentation, the platform revealed that the $8.99 per month service now reaches over 250 million people worldwide, a significant jump from 94 million the previous year.
This sustained growth demonstrates the strong momentum that the ad format has within the company's strategy. In 2025, Netflix generated $1.5 billion solely from advertising, and is now seeking new spaces to insert ads on its platform.
Starting next year, users will see ads in the vertical video feed that the mobile app recently launched and also in the podcast section that began to be incorporated at the end of last year. In this way, Netflix deepens its commitment to monetizing beyond traditional subscriptions.
The Basic plan with ads was launched in 2022 and since then has not only grown in membership numbers but has also increased in price. It currently costs two dollars more than the initial $6.99.
International Expansion and New Challenges
Additionally, Netflix will add its ad-supported tier in 15 new countries, including Austria, Belgium, Colombia, Denmark, Indonesia, Ireland, the Netherlands, New Zealand, Norway, Peru, the Philippines, Poland, Sweden, Switzerland, and Thailand. This expansion aims to capture key markets in different regions.
The company is also testing a personalization tool that adjusts ads based on each subscriber's viewing habits. In this way, it seeks to improve the relevance of advertising and increase its effectiveness.
However, not all news is good on the advertising front. This week, Texas Attorney General Ken Paxton included the ad-supported plan in a lawsuit against Netflix. The official accuses the platform of misleading subscribers about the data it collects to show personalized advertising.
This type of legal controversy could complicate Netflix's image in some markets, just as it is betting more on advertising revenue.
The Future of Ads in Streaming
With these moves, Netflix solidifies its position as one of the leaders in the ad-supported streaming segment. What started as a more economical option to compete against rivals has transformed into an important pillar of its business.
Executives see ads as a key growth avenue in a context where price increases and subscriber saturation limit organic growth solely from memberships. The combination of a larger audience, new formats, and geographical expansion shows an aggressive and well-defined strategy.
The coming months will be crucial to see how users respond to the increased presence of advertising on the platform and whether revenues continue to grow at the current pace. For now, the numbers support Netflix's decision to keep investing in this model.
