Netflix says its ad-supported tier is doing really well, expect more going forward

South Africa has, so far, avoided the tyrannical fist of Netflix’s more affordable “with ads” tier since it debuted elsewhere back in 2022, but we don’t expect that to be the case for much longer. During the streamer’s Upfront presentation, it provided some insight on its recent ad-ventures, and the results aren’t good. For us, that is.

Ad nauseam

Netflix reports that around 94 million active monthly subscribers around the world now subscribe to the ‘Basic with Ads’ tier since its launch three years ago. That’s more than double the figure the company reported just a year ago, and it can only mean one thing: ads are headed to those places still without them. The streamer hasn’t said as much yet, but with this sort of growth, its expansion seems inevitable.

“When you compare us to our competitors, attention starts much higher and ends much higher. And even more impressive, members pay as much attention to mid-roll ads as they do to the shows and the movies themselves,” said Amy Reinhard, Netflix’s president of advertising.

That’s… quite the statement, and one we’re not sure how it can confidently back up. Still, the numbers don’t lie, and with more than double the figures it reported a year ago, it seems like we’re in it for the long haul. The streamer also took the opportunity to really sell just how good Netflix’s ads are, confirming that its own in-house advertising platform, the Netflix Ads Suite, had just gone live in the US and Canada.

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The idea is to have the platform’s ad-centric algorithm get to know the viewers to show more relevant and personalised ads, greatly increasing the platform’s value to outside advertisers. Unfortunately, it seems like the tech actually works, and can “target more than 100 interests in over 17 categories — including life stages.”

“By controlling our own ad tech, we’ll be able to deliver newer tools, better measurement, and more creative formats. The Netflix Ads Suite is also designed to help you tap into the magic that makes Netflix Netflix. And it does that in a few big ways,” Reinhard added.

Worse yet, using a new ‘modular framework for ad formats’ and artificial intelligence (AI),  the Netflix Ads Suite can “instantly marry advertisers’ ads with the worlds of our shows,” and “create a better, more relevant experience for our members and drive the best results.” It’s a frightening idea that we struggle to see failing anytime soon. Bad luck, us.