Netflix Expands Its Ad Footprint
Netflix (NFLX) announced Wednesday that its ad-supported plan has hit a major milestone — reaching 190 million monthly active viewers (MAVs) globally in October — as the company unveiled a new engagement metric designed to provide advertisers with a clearer picture of its reach.
Unlike its old monthly active user (MAU) system, which counted accounts, Netflix’s MAV metric reflects actual viewership — measuring anyone who watches at least one minute of ads per month and factoring in multiple viewers per household.
“Our move to viewers means we can give a more comprehensive count of how many people are actually on the couch,” said Amy Reinhard, Netflix’s president of advertising.
A Clearer Picture for Advertisers
Netflix said the change comes in response to advertiser feedback demanding more transparent audience measurement. The MAV system also includes non-ad-tier members who watch live events with ads, broadening the scope of viewership data.
The streaming giant’s ad-supported tier, now available in 12 countries, has become a key growth driver even as Netflix stopped reporting global paid memberships earlier this year. At the end of 2024, the company had 301.6 million paid subscribers worldwide.
Netflix said advertising has now reached “critical scale in all markets,” underscoring how far the company has come since launching its $7.99 plan three years ago.
Ad Business Momentum Builds
Despite missing on profit and revenue last quarter, Netflix executives said ad revenue is set to more than double in 2025 from its current base. The company cited surging demand during this year’s U.S. upfront season and new programmatic integrations with Amazon (AMZN), Google (GOOG), The Trade Desk (TTD), and Yahoo DSP.
JPMorgan’s Doug Anmuth expects ad revenue to jump from $1.4 billion in 2024 to $2.9 billion in 2025, then $4.2 billion by 2026, as Netflix cements its position as a leading digital advertising platform.
WSA Take
Netflix’s pivot to a viewer-first metric signals confidence in its ad-tier scale and engagement — and positions the streamer squarely in the digital advertising big leagues.
With advertisers seeking transparent reach and flexible buying, Netflix is proving it can be more than just a subscription platform — it’s becoming an ad-tech powerhouse.
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