Netflix has announced a major milestone for its ad-supported tier, now boasting over 250 million monthly active users. This growth highlights how popular the cheaper, ad-supported plan has become, especially as more viewers seek affordable options amid rising subscription costs. The company revealed this impressive figure during its recent Upfront presentation, marking a significant jump from previous years.

Rapid Growth of the Ad-Supported Plan

Back in 2024, Netflix’s ad-supported tier had around 70 million users. By 2025, that number increased to 94 million. Now, in 2026, it has surpassed 250 million, showing how quickly the plan is expanding. The company plans to launch this tier in 15 more countries next year, including Austria, Belgium, Colombia, Denmark, Indonesia, Ireland, the Netherlands, New Zealand, Norway, Peru, Philippines, Poland, Sweden, Switzerland, and Thailand.

This tier, called Basic with Ads, started rolling out in 2022 and seems to be gaining popularity as streaming services become more expensive. Netflix increased its monthly subscription prices earlier this year by a dollar across all plans, making the cheaper, ad-supported version an attractive alternative for many users.

How Netflix Is Using AI and Facing Challenges

In 2026, Netflix is also making headlines for its use of artificial intelligence. The company has been experimenting with AI technology in its ads since last year. One of the new features being tested is personalized ad loads and dynamic frequency caps, which tailor the ads viewers see based on their viewing habits. This could make ads less intrusive and more relevant to each user.

However, Netflix is facing some legal issues related to its data practices. The company is currently involved in a lawsuit from Texas, claiming it illegally sells user data to ad tech companies. Netflix has denied these claims, stating that the lawsuit is based on inaccurate information. Despite these challenges, the company continues to grow its ad-supported subscriber base rapidly.

Overall, Netflix’s expansion of its ad tier and integration of AI show how streaming services are evolving in the digital age. As more users opt for affordable options, the industry is shifting toward more personalized, data-driven advertising strategies. Time will tell how these developments impact viewer experience and privacy regulations in the future.

Inspired by

• https://www.engadget.com/2172449/netflixs-ad-tier-now-has-a-whopping-250-million-monthly-users/

Sources

• theverge.com