It wasn’t that long ago when the idea of sitting through ads on Netflix felt like a betrayal of everything the platform stood for. But fast forward to 2025, and things have taken a surprising turn one that even die-hard binge-watchers might not have seen coming.
Netflix just revealed that its ad-supported plan now has 94 million monthly active users. That’s 20 million more than it had just six months ago. Clearly, people are warming up to the idea of a few ads in exchange for cheaper streaming.
In fact, the ad-tier, which costs just $7.99 per month, is now doing more than just offering a budget-friendly option. It’s beating out every U.S. broadcast and cable network when it comes to reaching that all-important 18-34 age group the very audience advertisers love most.
But why the shift?
The reality is, many viewers are re-evaluating their streaming budgets. With multiple platforms, rising subscription costs, and a tougher economy, even loyal subscribers are looking for ways to cut costs without giving up the content they love. Netflix’s ad plan offers a middle ground and clearly, it’s catching on.
What’s even more fascinating is how engaged these viewers are. According to Amy Reinhard, Netflix’s President of Advertising, people are actually paying attention to the ads not skipping or tuning out, but watching mid-rolls just as attentively as they watch the shows themselves. That’s gold in the world of digital advertising.
The bigger picture? This isn’t just about one company offering a cheaper option. It’s a sign of how the streaming industry is evolving. What started as a war against ads has now become a strategic alliance. Netflix, like its competitors, knows that advertising revenue is key to long-term growth especially as subscriber growth starts to plateau in some regions.
So yes, ads are back. But they’re smarter, more targeted, and (if Netflix gets it right) less annoying than ever before.
As more people choose value over pure convenience, it seems Netflix’s bold bet on ads is paying off — and it might just reshape the streaming landscape for good.
Luyanda is a digital marketing & SEO professional. She is a part of the Minority Business Review digital marketing team. She is a Boston Media House Graduate who obtained a Diploma in Media Practice majoring in Digital Marketing.