Netflix (NFLX) announced a new platform metric on Wednesday, stating in a blog post that its $7.99 ad tier, now three years old, has reached “critical scale in all markets,” with ads on its platform reaching more than 190 million monthly active viewers (MAVs) in October.
The new metric encompasses members who have watched at least one minute of ads on Netflix per month. The number is then multiplied by the estimated average number of people per household, as determined from Netflix’s first-party research.
MAVs also include non-ad tier members who watch the company’s live events, as those titles have ad breaks on all plans. The company’s goal in releasing this data is to provide a more comprehensive picture of engagement for advertisers.
Netflix’s ad-supported tier is currently available in 12 countries.
Netflix previously tracked its ad performance through monthly active users, or MAUs — a metric that differs from paid subscriptions. Because MAUs can include multiple people using the same account, it offered a less precise measure of engagement and monetization, according to the company.
Netflix reported MAUs of 94 million in May. Of note: The company has yet to disclose actual subscriber figures for the ad tier or how much revenue it has generated so far.
“After speaking to our partners, we know that what they want most is an accurate, clear, and transparent representation of who their ads are reaching,” Netflix president of advertising Amy Reinhard wrote.
“Our previous measurement (which was based on account profiles) didn’t represent all of the engaged people who are in the room watching,” she said. “Our move to viewers means we can give a more comprehensive count of how many people are actually on the couch.”
The company also previously reported global streaming paid memberships, but stopped doing so this year. At the end of 2024, Netflix had 301.6 million paid members worldwide.
An iPhone 13 screen showing the Netflix app. · Wachiwit via Getty Images
Wednesday’s announcement comes as Netflix doubles down on its advertising ambitions following a record quarter for ad sales.
In its latest earnings report, the streaming giant said ad revenue is on track to more than double in 2025 from what it described as “a small base relative to the size of our subscription revenue.”
Although the company missed on both profit and revenue last quarter, executives emphasized that advertising remains a key growth driver. They said the ad-supported tier now has a “solid foundation,” fueled by stronger advertiser demand and a US upfront that saw commitments double year over year.
The streamer has rolled out a wide range of expanded and programmatic ad offerings over the past year through integrations with Amazon (AMZN), Google (GOOG, GOOGL) Display, the Trade Desk (TTD), and Yahoo DSP, among others.
JPMorgan analyst Doug Anmuth said the recent moves should “support improved advertiser onboarding, flexible buying, and measurement.” He projects Netflix’s ad revenue will climb from $1.4 billion in 2024 to $2.9 billion in 2025 and increase another 45% to $4.2 billion by 2026.
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Allie Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at [email protected].
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