Industry

Netflix's ad-supported tier now boasts 40 million subscribers, the company announced while showcasing its upcoming lineup, which includes a diverse array of new series, specials, movies, and an expanded sports offering thanks to a partnership with the NFL.

During its second Upfront presentation for advertisers, Amy Reinhard, Netflix's president of advertising, revealed that the ad-supported tier had gained 5 million subscribers in the past year. This tier now accounts for over 40 percent of all signups in regions where it is available. Advertisers can now measure and verify the impact of their campaigns through new partners like Affinity Solutions, DoubleVerify, EDO Inc, Integral Ad Science, iSpotTV, Kantar, Lucid, NCSolutions, Nielsen, and TVision. Moreover, Netflix plans to launch its own in-house advertising technology platform by the end of the year. “Bringing our ad tech in-house will allow us to power the ads plan with the same level of excellence that’s made Netflix the leader in streaming technology today,” Reinhard stated.

This summer, The Trade Desk, Google’s Display & Video 360, and Magnite will join Microsoft as major programmatic partners for advertisers.

“We’re being incredibly strategic about how we present ads because we want our members to have a phenomenal experience,” Reinhard added. “We conduct extensive consumer research to stay ahead of the competition, offering opportunities that benefit both our members and brands.”

Bela Bajaria, Netflix’s chief content officer, emphasized the importance of keeping subscribers engaged. “Our audiences are highly engaged—and by engaged, I mean that they are choosing to spend their time watching Netflix. Engagement is the key to success in streaming. When people watch our shows and movies, they get more value from Netflix, stay subscribed longer, and are more likely to recommend us to their friends. And this matters to all of you because you want to be where the audiences are, too.”

According to Nielsen data cited by Netflix, over 70 percent of its user base watches more than 10 hours per month—15 percentage points higher than the closest competitor.

Upcoming series include Golf, created by Will Ferrell, Ramy Youssef, and Josh Rabinowitz, starring Ferrell and Youssef and executive produced by Youssef and Rian Johnson; Running Point with Kate Hudson and executive produced by Mindy Kaling; The Waterfront from Kevin Williamson; and a contemporary cowboy saga starring Tim McGraw. Additionally, 3 Body Problem has been renewed for a second season.

The sports lineup will feature a documentary on Jerry Jones and the 1990s Dallas Cowboys, and three series in partnership with the International Olympic Committee: Simone Biles: Rising, a show spotlighting men’s basketball teams, and Sprint, which tracks 100-meter sprinters. Netflix will also be the global home for the NFL’s two Christmas Day marquee games this year.

Newly announced films include Happy Gilmore 2 starring Adam Sandler, The Woman in Cabin 10 with Keira Knightley, and a new title from Kathryn Bigelow.