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Netflix Says Userbase for Ad Tier Has Tripled Despite Password Crackdown, Price Hikes

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Netflix is finding that an ad-supported subscription option is a big winner.

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According to The Hollywood Reporter, people are flocking to Netflix’s ad tier, with 10 million subscribers joining the tier in the last five months. That makes a grand total of 15 million ad-supported subscribers for the streaming service.

Now, that’s a small portion of Netflix’s 247.2 million worldwide subscriber base but at growth that rapid it sounds like it’s only going to go up. The causes of people opting into the ad-supported versions are most likely many. There could be first-time subscribers who finally see a lower price point that they are willing to pay for access to Netflix. It could also be non-ad subscribers downgrading their subscription as Netflix continues to jack up the price points of their ad-free options. And finally, and most likely, it could be a glut of people who were sharing accounts now signing up after Netflix began its password crackdown. That effort was, of course, met with cries of mass cancellations but the actual outcome was more sign-ups for Netflix.

Whatever the reason, all these ad-supported subscribers are about to get a bit more functionality with their ads. Netflix announced that the ad tier would now be able to download TV shows and movies to watch offline, a feature previously relegated to the ad-free tiers. That functionality should kick in this week. There’s also a host of new options for advertisers to pay for, meaning you’re going to see more shows sponsored by a single advertiser, the chance to see episodes without ads after binging for a while, and QR codes to scan. Exciting times for those who truly enjoy having stuff sold to them.

There’s one more reason, of course, that people are signing up to Netflix: they’re actually putting out great content that people want to see. One Piece, The Fall of the House of Usher, Stranger Things, and a slew of other shows and films that have become cultural touchpoints drive subscribers because they’re, you know, good.

About the author

Matthew Razak
Matthew Razak is a News Writer and film aficionado at Escapist. He has been writing for Escapist for nearly five years and has nearly 20 years of experience reviewing and talking about movies, TV shows, and video games for both print and online outlets. He has a degree in Film from Vassar College and a degree in gaming from growing up in the '80s and '90s. He runs the website Flixist.com and has written for The Washington Post, Destructoid, MTV, and more. He will gladly talk your ear off about horror, Marvel, Stallone, James Bond movies, Doctor Who, Zelda, and Star Trek.
Matthew Razak
Matthew Razak is a News Writer and film aficionado at Escapist. He has been writing for Escapist for nearly five years and has nearly 20 years of experience reviewing and talking about movies, TV shows, and video games for both print and online outlets. He has a degree in Film from Vassar College and a degree in gaming from growing up in the '80s and '90s. He runs the website Flixist.com and has written for The Washington Post, Destructoid, MTV, and more. He will gladly talk your ear off about horror, Marvel, Stallone, James Bond movies, Doctor Who, Zelda, and Star Trek.

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